Morgan Stanley analysts Betsy Grasek and Michael Cyprus speculate that Bank of America (BAC) may settle with the Federal Housing Finance Agency for anywhere between $2 billion to $3.6 billion according to a note in Seeking Alpha.

The FHFA is suing several banks for loans sold to Fannie Mae and Freddie Mac.

UBS Americas decided to settle recently with the FHFA for $885 million.

More news of settlements is expected over the next few months as the FHFA goes down the list.