
U.S. sues Bank of America over sale of $850M in mortgage-backed securities - georgecmu
http://www.washingtonpost.com/business/economy/us-sues-bank-of-america-over-sale-of-850m-in-mortgage-backed-securities/2013/08/06/461db552-fecf-11e2-9a3e-916de805f65d_story.html
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scottshea
This is tied to their own Mortgage operations rather than those they bought
with Countrywide (disclaimer: I worked at Countrywide for six years).

As the article notes though:

"The bank’s acquisition of mortgage giant Countrywide Financial in 2009 gave
it an edge in the housing market and endless legal headaches. Analysts
estimate that Bank of America has lost nearly $40 billion on mortgage
litigation and repurchases of soured loans linked to Countrywide."

So an $850 million deal resulting in litigation is rather small considering
the $40 bil they have already lost due to CW.

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skorgu
Thanks, none of the coverage I'd seen made the BoA/Countrywide distinction.

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seanhandley
The federal budget deficit is approaching a trillion dollars. What will this
really accomplish?

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dude3
Govment justs wants more control over Bank of America. They won't have to pay
it all back if the Govment wins. Just provide some special favors like
prisiming all accounts.

