“The Federal Reserve Bank of New York is part of an investor group now asking Bank of America (BAC) to repurchase the mortgages it bought.”
Why should BAC be forced to buy back these loans? As we have a number of ‘experts’ right here of FR that swear there is nothing wrong with these loans other than that the ‘DEAD BEATS’ need to be horse whipped and thrown into Debtor’s Prison.
(and we know who they are)
Excellent point :)
It isn’t only the NY Fed who wants them to buy back those mortgages either it’s Allstate, Pimco, Blackrock, MBIA, Fannie/Freddie, Pension Funds to name just a few others.
MBIA wins key ruling in Bank of America case
http://news.yahoo.com/s/nm/20101223/bs_nm/us_bankofamerica_mbia_lawsuit
Pimco, NY Fed Said to Seek BofA Repurchase of Mortgagesb(link only)
PIMCO, BlackRock, and NY Fed Ask BofA to Repurchase Mortgage Bonds
Allstate Sues BofA Over Bad MBS: Report
http://www.thestreet.com/story/10956524/allstate-sues-bofa-over-bad-mbs-report.html
Obama’s favorite banker Jamie Dimon has even said they will be talking about these every quarter for years though us taxpayers have been taking the real hit.
Is Fannie bailing out the banks?
“But how sharp is Freddie if all it can do is squeeze a $1.28 billion payment out of a giant customer in exchange for relinquishing fraud claims on $117 billion worth of outstanding loans? The very best its million-dollar executives can do is claw back a penny on each bubbly subprime dollar?”
http://finance.fortune.cnn.com/2011/01/03/is-fannie-bailing-out-the-banks/
They have even put aside over a Billion dollars so they must know these products were defective and they can only shove so many Billions on the taxpayers through the GSE’s.
If the loans were packaged into underwritten securities, and the loans in a given security were fraudulent in whole or in part, then BAC can indeed be forced to buy them back.