Stock版 - the delayed fine for fraud: BOA(T) to sink |
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s*********8 发帖数: 901 | 1 Today, Bank of America announced it would pay $8.5 billion to settle claims
from investors who lost money on mortgage-backed securities they purchased
before the crash. The dispute began last fall when a group of investors –
including giants like BlackRock, MetLife, and PIMCO – alleged mortgages
they purchased before the crisis from Countrywide Financial (which BOA
bought in 2008 for $4 billion) were stuffed with loans that didn't meet the
stated standards of quality of the borrower or the collateral. The investors
also alleged Countrywide didn't keep accurate records of the loans. The
settlement covers 530 separate mortgage securities with an original face
value of $424 billion.
The $8.5 billion is more than Bank of America has earned since the crisis
began in 2008. And BOA is taking another $7.5 billion charge on its books in
the second quarter ($14 billion in total charges) to account for future
liabilities from Fannie and Freddie.
The fines are getting a lot bigger (as we predicted)… And we bet there are
more to come. |
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