Banks Stocks Rise After Bank of America Settles Mortgage-Putback Claims |
| Bloomberg - Jan 3, 2011 |
Bank of America Corp. and JPMorgan Chase & Co. carried financial stocks higher after Fannie Mae and Freddie Mac agreed to settle claims on at least $4.1 billion in faulty loans they bought from Countrywide Financial Corp.
The agreement sent Bank of America, which owns Countrywide, up 6.5 percent to $14.20 in New York Stock Exchange composite trading, the biggest increase in almost eight months. New York- based JPMorgan rose 3.5 percent to $43.89 at 2:08 p.m. The KBW Bank Index of 24 stocks gained 2.3 percent to its highest level since last May.
Bank of America, the biggest U.S. lender by assets, agreed to pay Fannie Mae and Freddie Mac a total of $2.8 billion to settle claims stemming from the 2008 purchase of Countrywide, which was then the largest mortgage company in the U.S. The government-sponsored enterprises, or GSEs, have been pressuring banks to buy back loans they say breach so-called representations and warranties by providing bad or incomplete information about borrowers’ incomes, home values or other data.
Read Full Article from Bloomberg
- Posted: 2011-01-03 13:37:55
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