Hi Bruwin -
I still believe BofA is not out of the woods just yet. Many of their proposed settlements are being challenged
* August 5, 2011, 11:05 AM ET
Bank of America: Fannie, Freddie Exposure May be Worse than Anticipated
blogs.barrons.com
From the article:"...Bank of America’s cumulative GSE representations and warranties losses now add up to $7.8 billion, according to the company, up from $2.8 billion on Dec. 30 the company said in its filing.
“We also expect that in many cases (particularly in the context of litigation), we will not be able to resolve rescissions, cancellations or claim denials with the mortgage insurance companies before the expiration of the appeal period allowed by FNMA and, as a result, our representations and warranties liability may increase.”..."
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* AUGUST 5, 2011, 5:27 P.M. ET
NY attorney general hits BoA securities settlement
online.wsj.com
Delaware to intervene in BoA $8.5 billion pact
reuters.com
A day after New York's attorney general called Bank of America Corp's (BAC.N) $8.5 billion mortgage-backed securities settlement "unfair" and "inadequate", another state attorney general hinted he may also oppose the deal.
I doubt the "near term" future prospects of the bank will improve until a lot of this litigation is resolved and there is better transparency in BofA's mortgage book. I personally think they need to split up these mega banks and let the sour divisions fail. Too bad they can not do this for Fannie Mae and Freddie Mac but it appears that as the auditors dig through those bad loans, they are sending them back to BofA. These are just other liabilities that the bank will ultimately have to absorb.
EKS |
