Dechert, Wachtell take key roles on BoA's $11.6bn toxic loan settlement
Dechert and Wachtell Lipton Rosen & Katz have taken advisory roles on Bank of America's (BoA) $11.6bn (£7.2bn) settlement with US Government mortgage agency Fannie Mae to resolve mortgage purchase claims related to residential home loans. The settlement, which comes after the Manhattan US Attorney sued BoA last October for selling toxic loans, will see BoA make payments of $3.6bn (£2.2bn) and repurchase 30,000 loans for $6.75bn (£4.2bn), as well as paying $1.3bn (£808m) to Fannie Mae to resolve loan servicing fee obligations.
January 08, 2013 at 08:30 AM
2 minute read
Dechert and Wachtell Lipton Rosen & Katz have taken advisory roles on Bank of America's (BoA) $11.6bn (£7.2bn) settlement with US Government mortgage agency Fannie Mae to resolve mortgage purchase claims related to residential home loans.
The settlement, which comes after the Manhattan US Attorney sued BoA last October for selling toxic loans, will see BoA make payments of $3.6bn (£2.2bn) and repurchase 30,000 loans for $6.75bn (£4.2bn), as well as paying $1.3bn (£808m) to Fannie Mae to resolve loan servicing fee obligations.
BoA said the agreement meant it was "addressing substantially all of its remaining exposure to repurchase obligations for residential mortgage loans sold directly to Fannie Mae".
The settlement was announced yesterday (7 January) on the same day as ten banks, including BoA, Citigroup, JP Morgan and Wells Fargo struck an $8.5bn (£5.3bn) agreement with US regulators over mortgage servicing and foreclosure abuses.
BoA turned to elite Wall Street firm Wachtell for advice on the settlement, with litigation and insolvency partner Meyer Koplow leading a team alongside partner Theodore Mirvis, according to the Am Law Daily.
Fannie Mae was advised by Dechert, which fielded a team including white collar partner Mauricio Espana and the firm's former chairman and chief executive Bart Winokur.
Firms sitting on BoA's panels include Allen & Overy, Linklaters, Clifford Chance and Ashurst, alongside US firms including Skadden Arps Slate Meagher & Flom and Mayer Brown, all of which advise the bank's corporate and investment banking division.
Other firms with strong links to BoA include Simmons & Simmons, which sits on the bank's EMEA panel, while Cahill Gordon & Reindel and Morrison & Foerster also provide legal counsel in the US.
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