BofA’s FHFA Mortgage Suit Dropped After $9.5 Billion Pact
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U.S. housing regulators abandoned their lawsuit against Bank of America Corp.’s Merrill Lynch unit as part of a $9.5 billion settlement resolving allegations the bank misrepresented loans packaged into bonds.
The bank and the Federal Housing Finance Agency filed papers in Manhattan federal court today dropping the suit, a step in putting the financial crisis behind the firm. Charlotte, North Carolina-based Bank of America announced the settlement March 26.