21st Oct 2013 09:09
LONDON (Alliance News) - The US Federal Housing Finance Agency is seeking a penalty of more than USD6 billion from Bank of America Corp. for mis-selling mortgage-backed securities to government-backed mortgage companies, Fannie Mae and Freddie Mac, the Financial Times newspaper reported Monday.
The fine would be larger than the USD4 billion to be paid by JPMorgan Chase & Co. as part of its record USD13 billion mortgage-related settlement agreed on Friday, the FT siad.
Royal Bank of Scotland Group PLC has a USD30 billion notional exposure to the mis-selling probe and also faces a multibillion-dollar fine unless it manages to win the case in court, the FT added. Bank of America's exposure is more than USD57 billion and JP Morgan's was USD33 billion.
By Tom Waite; [email protected]; @thomaslwaite
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