The financial giant Bank of America has agreed to pay more than $11 billion to the government-backed mortgage finance company Fannie Mae for flooding it with toxic mortgages during the financial crisis. The Justice Department says Bank of America executed a scheme that would blindly hand out mortgages without proper checks and then turn around and sell the toxic loans to Fannie Mae and Freddie Mac. While Bank of America reaped a windfall, Fannie and Freddie were stuck with huge losses and foreclosed properties.
Bank of America to Pay $11 Billion Settlement to Freddie Mac
HeadlineJan 08, 2013
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