Bank of America will pay $ 9,300 million to U.S. mortgage “junk”

The Bank of America agreed today to pay 9.300 billion a federal regulator that absorbed and manages mortgage banks Fannie Mae and Freddie Mac for their role in the crisis of the “junk” mortgages.

The Federal Housing Finance Agency ( FHFA , for its acronym in English ) said in a statement that it has acted within its mandate to recover losses to American taxpayers .

Meanwhile , Bank of America said the disbursement cause a cut in expected for the first quarter profits.

The bank will pay 6,300 million in cash and the rest through the acquisition of about 3,000 million dollars in assets of Fannie Mae and Freddie Mac , agencies were rescued with public money after the fall of the “subprime” mortgages .

The FHFA sued 18 entities in 2011 for his irresponsible in creating the housing bubble and sales of toxic assets to Fannie Mae and Freddie Mac behavior, and only seven others remain pending lawsuits agree.

“This agreement represents an important step to help restore stability to the mortgage market and to recover the role of private firms in the mortgage lending ,” he said in a statement Melvin L. Watt , director of the FHFA .

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: