Nice ! The banking thieves are turning on each other,

[dixiegrrrrl]

Summary:
BOA bought bad Countrywide mortgages, sold them to Fannie Mae and Freddie Mac ( illegal,by the way, but hey, no one enforced that law)
so that Fannie and Freddie faced collapse because the ginormous amount of bad loans.
Now the bond insurers are turning on the banks, saying essentially,
" you can't sell mortgage bonds unless we insure them, those bonds are no good, you have to buy them back or else."
Which makes Fannie and Freddie happy, if they can get rid of the garbage mortgages the bonds are based on.

How do we know this is happening? See the 2 news articles, below:



First, this article:

BofA May Owe $20 Billion in Mortgage Buybacks, Insurers Say.

"Bank of America Corp., the biggest U.S. lender by assets, should repurchase as much as $20 billion in home loans that were based on wrong or missing information, said a trade group for bond insurers.

More than half of the soured home-equity credit lines and residential mortgages created from 2005 through 2007 that insurers examined should be bought back, the Association of Financial Guaranty Insurers said in a Sept. 2 letter to Bank of America Chief Executive Officer Brian T. Moynihan. Ambac Financial Group Inc. and Assured Guaranty Ltd. are members, and the group said repurchases may total $10 billion to $20 billion.

Banks are dealing with more frequent demands for “putbacks” from buyers and insurers of mortgage securities who say that the loans were created with false, misleading or missing data. The repurchases have already cost the four biggest U.S. lenders $9.8 billion, according to Credit Suisse Group AG. Bank of America has said it faces $11.1 billion of unresolved claims, which it reviews on a “loan-by-loan” basis.

“This defensive posture will soon prove ineffective in shielding Bank of America from the financial, accounting, legal and other implications of its massive obligations to our industry members,” Teresa Casey, executive director of AFGI, said in the letter. "

Note this part:
"Fannie Mae and Freddie Mac are among firms seeking to force banks to take back defective mortgages, especially those written during the peak of the housing boom, after defaults helped push the two federally backed firms and some insurers to the brink of collapse. "
http://www.bloomberg.com/news/2010-09-13/bofa-may-owe-20-billion-in-mortgage-buybacks-insurers-say.html

Now, this article:

Bank of America reportedly looking to sell assets

BOA is planning to try to sell or wind down billions of dollars of assets or businesses, the Financial Times reported Tuesday. Any such move would represent an attempt by the bank to ease shareholder concerns about its $2.3 trillion-plus balance sheet, according to the report. Non-core assets to be divested could exceed $100 billion and include some of the products and loans the lender acquired when it purchased mortgage firm Countrywide Financial, the report said, citing analysts and fund managers that recently attended meetings with B. of A. executives

http://www.marketwatch.com/story/bank-of-america-reportedly-looking-to-sell-assets-2010-09-13

Note: there is no way to tell how much bad debt is on that 2.3 trillion balance sheet.

[aquart]

1. And yet....

We don't hear of anyone taking an AK-47 to work at BoA. So as bad as it might be on paper, and you would think stressful, it still ain't as stressful as what's happening to the people on Main Street because of these greedy assholes.

[jtuck004]

2. Oh, thank you for this....

:rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl:
:rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl:
:rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl:

I needed that.

[dixiegrrrrl]

3. It's a giant game of hot potato.

Everyone involved has been trying to hide the fact that mortgages are basically worthless, while selling bonds based on inflated worth.
They may or may not have been hoping that somehow, by some magic, the market would improve? Dunno.
Looks like the bond insurers blinked first, which is now unraveling the chain of lies.
Extend and pretend may have hit a wall.

[jtuck004]

4. I think we will labor more to prop up the market

as it was, than insisting that these firms bite the bullet and take housing to the level it really is.

It might, maybe, have made sense, when anyone believed the economy (jobs) were really going to recover in a couple years, but I think it is clear to most people without an agenda that is is going to be 10 years or more. And if some of the stuff about currencies and foreign governments comes to pass and we really hit a collapse, letting people use their money now to put things back for harder times would be far more helpful than keeping things where they are and spending huge amounts to keep the smokescreen going.

Maybe then we can get ready for a time when FEMA has to serve the entire nation at one time.

[jgraz]

5. THERE CAN BE ONLY ONE!

[truedelphi]

6. Thank you for all this needed info.

I have been avoiding this forum because it is just too painful these days.

I didn't know about the illegality of the Fammie F, M, exchanges. Thanks for pointing that out. (They sure are quiet about it on Main Street.)

At least before Nov 4th 2008, one could believe that as soon as we had a change in Party monopolizing all levels of the goernment,t aht there might be hope for us on Main Street.

But now that even Hope has been foreclosed upon...

[dixiegrrrrl]

7. and sorry to add that as of today, hope grew dimmer.

check out what Japan did:

http://market-ticker.org/akcs-www?post=166634

I recommend reading the comments below the post.Essentially this could result in our stock market crashing soon.