BANK OF AMERICA SETTLES THE MORTGAGE CRISIS WITH A $9.5 BILLION SETTLEMENT–DROPPING THE BANK QUARTER PROFIT BY $3.7 BILLION–A DROP IN THE BUCKET

Bank of America to pay $9.5 bil. to settle claims

Bank of America has agreed to pay 9.5 billion dollars to settle claims for loss-making mortgage bonds.
The US Federal Housing Finance Agency sued Bank of America and 17 financial institutions in 2011 after the housing bubble burst. It said Bank of America and the other institutions failed to fully explain the risks of the subprime loan-related products they sold to Fannie Mae and Freddie Mac.
The agency regulates the 2 mortgage giants.
With the settlement, Bank of America's net profit for the January-March quarter will be reduced by about 3.7 billion dollars.

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