Bank of America (NYSE:BAC) Taking $2 Billion Charge in Q4

In order to settle home loan buyback claims with Fannie Mae and Freddie Mac, Bank of America (NYSE:BAC) paid out $1.34 billion on Friday to Fannie Mae and $1.28 billion to Freddie Mac. That leaves an estimated $2.7 billion in outstanding claims against Bank of America by Fannie Mae and Freddie Mac.

Citing the fulfillment of their promise of boosting equity by $3 billion, Bank of America added they're no longer under any obligation to the Troubled Asset Relief Program of the U.S. government, which was confirmed by the Federal Reserve.

Bank of America CEO Brian Moynihan said in a statement, "These actions resolve substantial legacy issues in the best interest of our shareholders."

Bank of America announced it will take a fourth-quarter impairment charge of close to $2 billion.

They were trading at $14.05, gaining $0.70, or 5.28 percent, as of 12:33 PM EST.