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BofA Will Buy Back $330M of Mortgages From Freddie


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It does seem like a good thing:


The weighted average interest rate on loans in the securities listed in Freddie Mac’s statement as most affected by the buybacks is 5.91 percent, compared with typical rates on new loans of less than 4 percent, according to Bloomberg data.

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AIG's was a long shot from the beginning, but considering Judge Mariana Pfaelzer's consisting ruling against BAC it is very nice. "filed more than three years after the bonds were first sold" should take care of all the headache vintages. (2005-2008)



GSEs: SETTLED. But Fannie asking to putback mortgage with failing insurance.

Private Label: Article 77 to go.

Monolines: AGO SETTLED, MBIA and AMBAC to go

Foreclosure/Robosigning: MOST AGs SETTLED, a couple of AGs to go.

Merrill Acquisition: SETTLED

AIG: in process, but far cry. DISMISSED

FHFA: just starting


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From Monday:


Matthew D. O'Connor

Deutsche Bank AG, Research Division


I'm going to sneak in one more and then we'll open up to audience the questions here. But as we think about -- let's just combine kind of mortgage put back and litigation costs combined here, obviously, it's been very costly for you to date, costly for the industry in various areas. How much through of this -- how much left is there of this -- it seems like things keep cropping up and it's not even just the mortgage put back right there, it's just various investigations into different parts of banking and charges being taken?


Brian T. Moynihan


Well, I think we are still -- if you look at the P&L, everything pales by comparison what we did in the quarter last year. We put up $20 billion.


But if you think about the amount of balance sheet position we have between the reps and warranties reserves and the litigation reserves and things like that, there's a lot of money that's been put up on the various pieces and I won't go through it in detail here. But think about what we done the agency and a non-agency and $8.5 billion settlement, and all that stuff. So a lot of that has been put on the balance sheet. And so you can debate about whether we'll move a little bit, but a lot of these were put on the balance sheet.


The real cost now is the operational cost.

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Wow this is a good one! Board would you care to opine?


Not so fast?





AIG's $6 billion in mortgage-backed securities claims against Countrywide survived a near-death experience late Wednesday, when U.S. District Judge Mariana Pfaelzer of Los Angeles issued her ruling on Countrywide's statute of limitations defense. In a 25-page opinion, Pfaelzer tossed AIG's federal securities claims, as well as some fraud and negligent misrepresentation claims by AIG subsidiaries. But AIG said in an email statement that the ruling leaves alive "more than 98 percent of the recovery it seeks." For a plaintiff that feared the worst -- as AIG most certainly did, thanks to a silver bullet Pfaelzer handed to Countrywide in February -- the judge's ruling is a stunning reprieve.

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Guest Dazel



I am not going to get into this...but the $10b suit is now $6b?


A waste of time....these lawsuits will all settle in time....the business matters.



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Does anyone find these sort of lawsuits more than a little strange.  A little like Samsung suing Apple or vice a versa, and being Apples biggest supplier at the same time.  No doubt AIG and BAC have all sorts of daily business transactions, and meanwhile one is suing the other.  And to top it off, when BAC wins this case AIG suffers, and they likely have many of their shareholders in common., such as mean and PlanM.


A bit like suing myself, or taxing myself a certain percentage of my profits.

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