Bank of America should pay the maximum penalty of $863m for selling defective loans to Fannie Mae and Freddie Mac, given the egregiousness of the fraud, U.S. prosecutors told a federal judge.
A U.S. housing regulator is seeking at least $6bn from Bank of America to settle civil claims the firm sold faulty mortgage bonds to government-backed finance companies Fannie Mae and Freddie Mac, according to a person with direct knowledge of the discussions
A former executive of Bank of America's Countrywide unit told a federal jury on Tuesday that she did not knowingly sell toxic mortgages to Fannie Mae and Freddie Mac in the run-up to the financial crisis.
Wells Fargo agreed to an $869m settlement with Freddie Mac to resolve repurchase claims on faulty loans sold to the government-backed firm before 1st January 2009.
And it's the last thing this firm needs right now.
HSBC said possible damages from a lawsuit filed by a U.S. regulator over improperly sold mortgage-backed securities could cost the bank as much as $1.6bn.
Bank of America, JPMorgan Chase and Royal Bank of Scotland are being pressed for multibillion-dollar payments to the US government over toxic mortgage-backed securities, according to people familiar with negotiations.
Easy come, easy go.
A large hedge fund that invested in shares of the government-sponsored mortgage companies Fannie Mae and Freddie Mac has sued the U.S. Treasury Secretary, and the head of the Federal Housing Finance Agency, along with the agencies themselves, arguing that their attempts to wind down the companies violate a Congressional mandate.
In his first TV interview since the company reported record profits, Fannie Mae CEO Tim Mayopoulos told Bloomberg TV's Peter Cook that U.S. taxpayers could see a net gain from their bailout as the housing market rebounds.