Maxine Waters Asks if BofA Deal with Fannie and Freddie Was ‘Backdoor Bailout’

January 6, 2011  |  

(LA Times) — Rep. Maxine Waters is questioning whether Bank of America’s $2.8-billion settlement withFannie Mae and Freddie Mac this week was a little too sweet — even “a backdoor bailout” by the government, as Waters (D-Los Angeles), a longtime member of the House Financial Services Committee, put it.  The settlement with Fannie and Freddie, the government-sponsored mortgage buyers that collapsed into federal conservatorship because they lost so much money, was announced Monday. The deal would put an end to most of Fannie’s and Freddie’s demands that BofA buy back mortgages they claimed were misrepresented when they bought them from Countrywide Financial Corp.

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