BoFA has $193m exposed to Greek’s debt, newspaper claims

11 May 2010

Bank of America (BoFA) has announced up to $193 million was exposed to Greek’s sovereign debt as of the end of March earlier this year.

The financial institution has up to $1.1 billion exposed to non-sovereign debt and a further $205 million in credit default protection surrounding the ailing state’s debt, the Wall Street Journal reported.

Further figures showed that the bank’s total exposure to countries including Portugal, Spain, Ireland, and Italy as well as Greece added up to $23.5 billion.

Up to $1.4 billion of funds was included in credit protection for these states.

A spokesman for the bank told the news provider: “We have been managing down our exposures ... but we are still supporting clients in those countries. We believe the exposures today are quite manageable.”

Meanwhile, Countrywide Financial, a mortgage lender recently taken over by BoFA, has agreed to settle a law suit by paying former investors more than $600 million.

The case, which was led by a number of pension funds, accused the firm of misleading investors over its lending processes.

Countrywide Financial will pay $600 million while auditing firm KPMG will pay $24 million as part of the settlement.

By Jim Ottewill

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