BofA settles on mortgage repurchase claims

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A Bank of America sign is displayed outside a branch in Tucson, Arizona in this January 21, 2011 file photo. Bank of America Corp is close to a deal to pay $8.5 billion to settle claims from a group of powerful investors that lost money on mortgage-backed securities, a person familiar with the matter said on June 28, 2011. REUTERS/Joshua Lott/Files

A Bank of America sign is displayed outside a branch in Tucson, Arizona in this January 21, 2011 file photo. Bank of America Corp is close to a deal to pay $8.5 billion to settle claims from a group of powerful investors that lost money on mortgage-backed securities, a person familiar with the matter said on June 28, 2011.

Credit: Reuters/Joshua Lott/Files

Wed Jun 29, 2011 8:17am EDT

(Reuters) - Bank of America Corp settled nearly all of the claims related to the legacy Countrywide-issued first-lien residential mortgage-backed securitization (RMBS) repurchase exposure for $8.5 billion in cash .

The largest U.S. bank by assets said it intends to record an additional $5.5 billion provision to its representations and warranties liability for both Government-Sponsored Enterprises (GSE) and non-GSE exposures in the second quarter of 2011.

On Tuesday Reuters reported that Bank of America was close to a settlement agreement with a group of powerful group of investors that lost money on mortgage-backed securities.

(Reporting by Brenton Cordeiro; Editing by Savio D'Souza)
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Comments (15)
Greenspan2 wrote:
How nice for these powerful investors. We know what everyone else gets.

Jun 28, 2011 8:59pm EDT  --  Report as abuse
edgyinchina wrote:
In 2009, I warned everyone that in a short time, these bankers would just pay a few billion, and then get back to their main business of screwing over the little people…. Well. Now we’re there. BofA is back in business, boys….
They get to take your house, strap you with an unpaid lien to mess up your credit rating so you can’t ever hope to buy anything again, and yet THEY don’t get jail for falsely selling you something illegal….
Just one more step on the road to third-world status America….

Jun 28, 2011 9:49pm EDT  --  Report as abuse
go2goal wrote:
Absolutely amazing……

If you are rich and connected (powerful), then you get your money back and with a big thanks to tax payer bail outs. Who in their right mind thinks this is not socialism….FOR THE RICH!

If you are a working stiff and your investment banker took your money and invested in funds of funds that consisted of mortgage backed securities…..then guess what, you take the loss. But what’s even worse than that…..now your benefits are being cut as the establishment dreams up a propaganda program that workers are getting too much retirement money.

The rich get bailed out and they get richer…even when they gamble and lose. The rest of America gets stiffed!

This isn’t capitalism….this is pure and simply an oligarchy….crony capitalism.

When are the workers and common people going to finally realize what’s going on and going to revolt against this system in the US?

Jun 28, 2011 10:03pm EDT  --  Report as abuse
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