Bank of America Reaches $9.35B Settlement With Fannie and Freddie

NEW YORK (TheStreet) --Bank of America  (BAC) reached an agreement to settle litigation with Fannie Mae  (FNMA) and Freddie Mac  (FMCC) over problem mortgage backed securities (MBS).

The bank will pay $4.4 billion in cash to Fannie Mae and repurchase MBS from Fannie with an unpaid principal balance of approximately $1.9 billion. It will pay Freddie Mac $4.95 billion and repurchase $3.1 billion in MBS.

--Written by Dan Freed in New York

Follow @dan_freed


Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

More from Stocks

3 New Investing Myths That Must Be Busted

3 New Investing Myths That Must Be Busted

Why a Global Stock Market Crash Is Coming

Why a Global Stock Market Crash Is Coming

Dump All Your Disney Stock: Doug Kass Insider

Dump All Your Disney Stock: Doug Kass Insider

3 Must Know Market Insights From TheStreet's Jim Cramer Before Wednesday's Open

3 Must Know Market Insights From TheStreet's Jim Cramer Before Wednesday's Open

CHART: Even Consumer Staples Stocks Are Being Pummeled in Tuesday's Market Rout

CHART: Even Consumer Staples Stocks Are Being Pummeled in Tuesday's Market Rout