 Image uploaded from a quicklink (Image by Unknown Owner) Details DMCA | I must confess I am surprised that Bank of America is close to settling a litigation threat by a group of investors headed by the New York Fed, Pimco, and Blackrock, which was discussed in the media quite a bit last fall for a reported $8.5 billion. And this comment from reader Pelican: "The settlement goes beyond just the $56 billion of securities owned by these investors, however. It covers nearly all of $424 billion in mortgages that Countrywide issued, which were then packaged into mortgage bonds. That means that a broader group of investors will share in the proceeds, according to the people who were briefed on the proposed settlement, but were not allowed to speak publicly." If BofA can settle on $424 billion of bonds for $8.5 billon, that's 2%, which is a screaming bargain, particularly if they get a broad waiver. |
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At www.nakedcapitalism.com
At www.nakedcapitalism.com
