News Summary: Bank of America in mortgage deal
News Summary: Bank of America in $11.6 billion settlement with Fannie Mae over mortgages
SETTLEMENT DAY: Bank of America reached an $11.6 billion settlement with government mortgage agency Fannie Mae to settle claims resulting from mortgage-backed investments that soured during the housing crash, bringing it a step closer to clearing up its legacy of bad home loans. The bank was also part of a separate settlement between regulators and mortgage companies over wrongful foreclosure practices.
NEARER TO NORMAL: The move takes the bank, a poster child of the financial crisis, a step closer to normal. It agreed in September to pay $2.43 billion to settle a class-action lawsuit related to its takeover of Merrill Lynch in 2008.
SMALL PROFIT: Despite racking up the charges, the bank said that it still expects fourth quarter earnings to be "modestly positive."
