RJ and Makay

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The U.S. Treasury Department announced recently that it would facilitate the expansion of annuities and other guaranteed lifetime income products for retirement plans.  The department has put forward two regulations that will make it easier to purchase an annuity through company-funded pensions or 401(k) accounts.  Annuities pay out guaranteed lifetime income streams in exchange for a lump sum up-front payment.

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Bank of America (BAC) announced Wednesday an agreement to pay $8.5 billion to settle claims by large investors who lost money on mortgage-backed securities purchased before the 2008 housing collapse.  It would be the largest settlement to date by any financial services firm tied to the subprime mortgage boom and subsequent bust.

Bank of America is selling its remaining 7% stake of Blackrock to Blackrock for $2.5 billion.  Blackrock is buying the stake, 13.6 million shares, at 187.65 a share, a 3.6% discount on the average closing price of the shares over the past 15 trading days.

The deal should make it easier for Blackrock to double its mutual fund business over the next three years, analysts say.  The firm is financing the purchase through available cash and $2 billion of medium and long-term commercial paper debt.