From the article:
Former President Bill Clinton said Bank of America Corp. (BAC)‘s accord with mortgage-bond investors may give more ” underwater” borrowers a chance to cut the amount owed on their home loans.
” You’d relieve the anxiety of countless Americans who would know they could hold onto their homes,” Clinton, 64, said in an interview yesterday with Bloomberg Television’s Al Hunt.
Bank of America, the largest U.S. lender by assets, agreed this week to pay $8.5 billion to bondholders who said they were duped into investing in defective mortgages. The deal calls for specialized servicers to manage some of the highest-risk loans, an arrangement that Clinton said could lead to debt reductions and avert foreclosures.
