As many of you know, I am not an advocate of Bank of America, having said that, I don’t understand this one at all. It is my understanding that this settlement stems from B of A’s purchase of Countrywide. This was a purchase that they didn’t want to do, but were literally forced to do by the FED. If I recall the purchase price was $4 billion, which means that the settlement was two and a half times the purchase price. Now that is what I call a great deal.
I have always been curious, where does the money go, is it paying off the deficit in this country. With all of the settlements that the FED has worked out over the past couple of years, where does the money go?
Check out this article for details on the settlement:
"Bank of America and Fannie Mae reached a $10.3 billion agreement Monday to resolve repurchase claims on loans originated from 2000 through 2008. The agreement also requires B of A to pay the GSE $1.3 billion in compensatory fee obligations."