By John Kell
Bank of America Corp. on Wednesday said it would pay about $9.5
billion to settle all litigation by a top U.S. federal regulator
over mortgage securities sold to Fannie Mae and Freddie Mac.
The second-largest U.S. lender by assets warned the settlement
would trim first-quarter profit by about $3.7 billion before taxes,
or 21 cents a share after tax.
The Federal Housing Finance Agency, which controls the
government-backed mortgage giants, sued Bank of America and 17
other financial institutions in 2011 seeking unspecified damages on
about $200 billion of mortgage-backed securities.
Write to John Kell at john.kell@wsj.com
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