NEW YORK - Bank of America Corp., the biggest U.S. bank by assets resolved disputed and agreed to pay 2.6 billion dollars to Freddie Mac and Fannie Mae.
BAC stock is up now over 5% in early morning trade on the news and puts the stock up 14% since it released its quarterly three earnings and 4% up since news of the foreclosure scandal.
Bank of America faced $12.9 billion in unresolved putback demands on soured mortgages before today. A putback is a word used on Wall Street for a sour loan a bank may have to buy back.
Allan Edwards CEO of The Markets Are Open commented "this is positive news, but I never considered it when I was purchasing BAC all through the last month... Many people were making to big of a deal of the "putback" scandal considering Bank of America's capital position."
To see the full BAC reportclick here.
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