Delaware AG Biden Joins New York State Attorney General Schneiderman, Intervening in Proposed BofA Settlement
For full article:
http://firedoglake.com/2011/08/08/delaware-ag-biden-joins-schneiderman-intervening-in-proposed-bofa-settlement/#comments<snip to later paragraphs>
Already, the Schneiderman decision is reverberating. Fannie Mae and Freddie Mac plan to hit Bank of America with more mortgage repurchases, raising more liability for them. And today, in the ultimate “I hope for mutual destruction” lawsuit, AIG sued BofA over representations and warrants on their mortgage bonds. They are seeking $10 billion on $28 billion in bonds. This is the largest number sought by a single investor, and it’s a direct piggy-back on what will come out in the settlement, should New York and Delaware be allowed to intervene. This brings the number in mortgage bond lawsuits up to $197 billion.
BofA, meanwhile, has seen its stock sink to a 52-week low, down 26% in a month. More important, from Shahien:The cost to protect Bank of America’s bonds against default have surged more than 17 percent since last Friday, according to Markit.
It now costs $207,000 to protect $10 million of BofA’s debt, as of Friday’s close. Last week, it cost just $176,000. The price of credit protection generally increases as investor confidence deteriorates.
The death watch continues.