(Sk)ank of America comes clean

Discussion in 'Politics' started by B_VinylBoy, Jan 5, 2011.

  1. B_VinylBoy

    B_VinylBoy New Member

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    Ah, the real estate bubble and the collapse of the housing market. It wasn't long ago when this board was alive with discussions, debates and flame wars about banks, Fannie & Freddie Mac, predatory loans...

    Predatory borrowers? :rolleyes:

    Whatever your stance on the issue, this little news item should spark some discussion: Bank of America Corp. reached a $2.8 billion settlement with Fannie Mae and Freddie Mac over claims that one of its businesses sold bad mortgages. The payment is far lower than analysts expected and removes some uncertainty that has hovered over the bank. The settlement is the biggest yet involving banks and the two government-backed mortgage giants, which continue to suffer huge losses from the collapse of the housing market. Analysts and investors have been waiting to see how hard a line Fannie and Freddie would take with big mortgage lenders such as Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. Some estimates ran as high as $10 billion for a Bank of America settlement. - source

    You can bet more dirty details will be leaked as the next few years go by, especially when you have Rep. Darrell Issa from California pushing for an investigation on Fannie & Freddie Mac as one of his priorities as the new chairman of the House Oversight and Government Reform Committee. But at least now we can start looking at the real problems and not blaming it on the poor and their push for maintaining a human necessity.

    At least one can hope. I can already hear the howling from the money grubbing opposition.
     
  2. Drifterwood

    Gold Member

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    At least they caused less problems than BP. :ugh:
     
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