Hot damn! MORE BOA lawsuits!!!!

[dixiegrrrrl]

Reuters) - JPMorgan Chase & Co and Bank of America Corp were hit with new lawsuits by investors claiming losses on $4.5 billion of soured mortgage debt, adding to litigation targeting the two largest U.S. banks.

The plaintiff Sealink Funding Ltd said it lost money after buying nearly $2.4 billion of residential mortgage-backed securities (RMBS) from JPMorgan and $1.6 billion from Bank of America from 2005 to 2007, relying on offering materials that were misleading about the quality of the underlying loans.

more:
http://finance.yahoo.com/news/JPMorgan-BofA-sued-over-rb-4268611515.html?x=0&sec=topStories&pos=5&asset=&ccode=

BOA must be close tapping out its lawyer budget by now.

[elleng]

1. Good to hear this!

Get them for misleading!

They may go in-house with their lawyers, but if the aggrieved keep coming, 'nature' should take its course, that is, :thumbsdown:
w BOA + the rest of the bums.

[chill_wind]

2. K & R

Speaking of BofA incidentally, just saw this today:

Naked Capitalism
Yves Smith

Quelle Surprise! SIGTARP Report Finds Citi, Bank of America Allowed to Leave TARP Prematurely


We said at the time it was inexcusable for the Treasury to allow banks to repay the TARP as early as they did (US banks are still below the capital levels many experts consider to be desirable; Andrew Haldane of the Bank of England has made a well-substantiated case that higher capital levels cannot remedy the problem, since the social costs of a major bank blow up are so great, and you therefore need very tough restrictions on their activities).

And why were the bank so eager slip the TARP leash? To escape some pretty minor restrictions on executive compensation. This had NOTHING to do with the health of the enterprise and everything to do with executive greed. And not surprisingly, Treasury indulged it.

(snip)

SIGTARP is upset that the Treasury went through the stress tests, which among other things, determined how much capital the banks would need to raise, then ignored its own findings. The SIGTARP discusses that Treasury effectively made up on the fly how much more capital the banks would need to scrounge up, with the required number being lower than the stress test number.

Let’s put aside the fact that this blog and quite a few financial services experts not in the pay of the banks or dependent on their good will (like equity analysts needing access) called the stress tests a sham. We’re surprised that SIGTARP finds this Treasury shell game (of allowing the banks to get away with raising less dough than the stress tests indicated) to be a surprise. We reported that this was Treasury’s plan back in May 2009:

more:

http://www.nakedcapitalism.com/2011/09/quelle-surprise-sigtarp-report-finds-citi-bank-of-america-allowed-to-leave-tarp-prematurely.html

(bold and italics mine)

[dixiegrrrrl]

3. Heavy sigh.

[westerebus]

4. There, There.

The Admin only lies when their lips are moving, their hand is composing, or their eyes are open.

Shall we sing: Bringing in the Sheep?

Seems fitting?

With all the fleecing about.

[dixiegrrrrl]

6. "You can shear a sheep many times, you can skin one only once".

Somebody needs to tell them that.

btw...wasn't the song titled "Bringing in the "sheaves"????

[westerebus]

7. We thought it funny to sing "sheep".

Had no idea at the time the irony imposed by our youthful distractions.

[golfguru]

9. Executive compensation in USA is out of control

and it will not be solved by keeping corporate taxes high.
Those high taxes gives the corporations incentive to pay the
money to executives instead of the tax man.

I have long advocated eliminating corporate taxes and make individual taxes more progressive. Every penny of profit flowing out of any corporation, whether it is executives, stockholders, employees, or whatever, is all to individuals. More taxes should be paid by those with higher salaries and larger share holders, not the small fry stock holder or the low level employee.

[Hawkowl]

5. Bankruptcy

I am expecting that the BofA holding company will have its Countrywide subsidiary declare bankruptcy to contain these lawsuits.

[steve2470]

8. I hope they go bankrupt nt