Bank of America to pay billions in fines for faulty mortgage bonds

, Posted: Thu, March 27 2014 at 10:36 PM, Updated: Thu, March 27 2014 at 10:46 PM

Bank of America to pay billions in fines for faulty mortgage bonds

Bank of America has agreed to pay $9.5-billion in fines to settle claims it sold faulty mortgage bonds.

The lawsuit was filed on behalf of Fannie Mae and Freddie Mac, which bought the securities in advance of the financial crisis.

The settlement includes $6.3-billion in cash. As part of the deal, the bank will also buy back $3.2-billion of mortgage securities.

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