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Tuesday, October 19, 2010

More Mozilo Magic

Well after the Feds took 67.5 million in lieu of prison time for Mr Mozilo, Bank of America reported a 10 billion dollar write down today. They attributed the loss to revenue that the financial reform bill clipped from them. This is credit card revenue they receive from retailers.

Being the dumb shit that I am, I am still trying to figure out how you can charge off money that you haven't earned yet. It's not like the reform package is retroactive.

Now, the latest news from Bank of America;

Pacific Investment Management Co., BlackRock Inc. and the Federal Reserve Bank of New York are seeking to force Bank of America Corp. to repurchase soured mortgages packaged into $47 billion of bonds by its Countrywide Financial Corp. unit, people familiar with the matter said.

The bondholders wrote a letter to Bank of America and Bank of New York Mellon Corp., the debt’s trustee, citing alleged failures by Countrywide to service the loans properly, their lawyer said yesterday in a statement that didn’t name the firms.

Investors are stepping up efforts to recoup losses on mortgage bonds, which plummeted in value amid the worst slump in home prices since the 1930s. Last month, BNY Mellon declined to investigate mortgage files in response to a demand from the bondholder group, which has since expanded. Countrywide’s servicing failures, including insufficient record keeping, may open the door for investors to seek repurchases by bypassing the trustee, said Kathy Patrick, their lawyer at Gibbs & Bruns LLP.

Like I said in the last piece, Mozilo and Countrywide are the kiss of death. And now, Bank of America if forced to comply, might need TARP II to bail them out again. It just never ends. Government-the FED-and Too Big to Fail Banks. The Washington Cartel.

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