Bank of America (BAC) Jumps Higher Following Countrywide RMBS Settlement
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Bank of America (NYSE: BAC) shares are ripping higher (in Bank of America terms) ahead of the bell today, after reaching an agreement to resolve nearly all of the legacy Countrywide-issued first-lien residential mortgage-backed securitization (RMBS) repurchase exposure.
Shares are up over 4.5 percent pre-market.
The agreement includes a cash payment of $8.5 billion to the covered trusts to be made after final court approval of the settlement. Bank of America also intends to record an additional $5.5 billion provision to its representations and warranties liability for both Government-Sponsored Enterprises (GSE) and non-GSE exposures in the second quarter of 2011.
Shares are up over 4.5 percent pre-market.
The agreement includes a cash payment of $8.5 billion to the covered trusts to be made after final court approval of the settlement. Bank of America also intends to record an additional $5.5 billion provision to its representations and warranties liability for both Government-Sponsored Enterprises (GSE) and non-GSE exposures in the second quarter of 2011.
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