Talk:Bank of America
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BofA Litigation Liability
Bond insurer forced to pay out for bad Countrywide MBS sued the company saying they made fraudulent representations about said products. Bond insurance is a critical part of keeping bond markets functioning. A positive outcome for MBIA could open the door for other insurers to file suit against MBS issuers.
Analyses of the most recent MBIA case ruling http://www.subprimeshakeout.com/2012/01/mbia-celebrates-bransten-decision-on-loss-causation-bondholders-still-looking-for-guidance.html http://blogs.reuters.com/alison-frankel/2012/01/04/no-joy-for-mbs-investors-in-ny-judges-bond-insurer-rulings/
At issue: Putbacks due to material misrepresentation and breach of warranty.
Litigant: MBS Settlement w/22 investors
$8.5 billion settlement being challenged as far too small. This is the last major lawsuit related to Countrywide and by extension one of the last chance for Countrywide MBS investors to get restitution. A rejection of the settlement would expose BofA to much more liability. http://in.reuters.com/article/2011/12/27/bankofamerica-bnymellon-settlement-idINDEE7BQ0EU20111227 http://newsandinsight.thomsonreuters.com/Legal/News/2011/08_-_August/BofA_MBS_settlement_shocker__Grais_removes_case_to_federal_court/
At issue: putbacks related to $174bn of unpaid principal in mortgage securitization trusts
Litigant: FHFA Suit against 17 banks over MBS (including BofA & Countrywide)
In finance being sued by your regulator is a kiss of death. That is why financials tanked the day this suit was announced (BAC dropped over 8%). Discovery hasn't yet begun and there are motions to dismiss on statute of limitations grounds (see below). http://newsandinsight.thomsonreuters.com/Legal/News/ViewNews.aspx?id=35830
The lawsuits http://www.fhfa.gov/Default.aspx?Page=110
On the statute of limitations for putbacks http://www.subprimeshakeout.com/2011/05/mbs-lawsuit-drivers-part-ii-two-more-reasons-why-mbs-cases-should-jump-in-2011.html
At issue: when statute of limitations begins for MBS suits, putbacks of almost $200 billion
Litigant: County Title offices suing BofA/MERS to collect on back registration fees
Some counties are banding together to sue MERS and its owners. http://www.bloomberg.com/news/2011-09-22/bank-of-america-filing-fee-case-may-open-new-front-in-mortgage-lawsuits.html
At issue: Fees and legal restitution. Presumably every county in the country has a case. http://www.columbialawreview.org/articles/foreclosures-and-the-failure-of-the-american-land-title-recording-system