News Summary: Bank of America in mortgage deal

Updated at: 01/07/2013 4:07 PM
By The Associated Press

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."

(Copyright 2013 by The Associated Press. All Rights Reserved.)