Bank of America $60 Billion

Bank of America $60 Billion - Bank of America $60 billion penalty due to lawsuits likely possible, analysts say, The Bank of America is likely to pay a total penalty of $60 billion due to lawsuits, this is what some analysts are now saying. The cases are related to mortgage-backed securities, which include the 530 mortgage trusts that were sold by Countrywide, as well as the estimated $108 billion in losses from some investors.


According to a report on Motley Fool‘s website this Friday, May 3, 2013, the idea of $60 billion loss of Bank of America came about after the huge loss from 22 investors, including big asset managers BlackRock and PIMCO, and giant life insurance company, Metlife. A $8.5 billion settlement was settled back in 2011.

Apparently, some investors were said to gathers evidence proving that the said bank placed its own interests first before theirs. As an example, mortgages contained within the MBSes were purportedly modified, and that they were not bought back from investors. An agreement was allegedly made between the parties involved.

“This is just speculation, of course, but the answer seems to be: A lot. One expert estimated earlier this year that the damage could come in at somewhere between $25 billion and $30 billion, while analyst Mark Palmer at BTIG Research figures it may hit more than $60 billion.” A statement reads at Fool.com, written by Amanda Alix.

“Palmer noted that the monoline insurer’s lawyers have estimated that 56% of the Countrywide MBSes MBIA insured had issues so odious that a lender would be too embarrassed not to repurchase them. Applying the same formula to $108 billion, the penalty comes in at $60.5 billion.” Alix added.

Meanwhile, a new hearing is being set in a New York court on Thursday, May 30, in front of Supreme Court Justice Barbara Kapnick, wherein the argument will determine whether the $8.5 billion settlement should be approved or not.

Source: batangastoday