The storyline of BAC litigation continues to head to the right direction,
Firstly, A U.S. Appeals court has handed down a potentially important decision for
Bank of America, returning the bank’s landmark $8.5 billion mortgage-bond
settlement to state court after some investors had pushed to have it heard in
federal court.
Sanford Bernstein analysts called Monday’s ruling an “incremental positive
for BofA, as it likely narrows the scope of review that the settlement will
face, and increases the probability that it gets approved.”
Detailed news can be seen from WSJ.
The chance of $8.5 bil settlement to be approved increased significantly.
Secondly, Bank of America Corp., Wells Fargo & Co. and three other banks that
settled a nationwide probe of foreclosure practices this month will get a bonus
from the deal: protection for $308 billion of home-equity loans they hold.
Loss-sharing will break the logjam that occurs when banks drag their feet
processing modifications on mortgages that outrank their junior liens, said the
Obama official, who declined to be identified because this arrangement hasn’t
been made public.
“The roadblock to getting comprehensive modifications has been the efforts of these banks, the biggest servicers, to protect their second liens,” Wilmarth said. “To only suffer losses on an equal basis as first-lien investors is a good outcome for them.”
Detailed news can be seen from Business Week.
I am not saying the problems with BAC are going away completely, but it seems like things are going into the right direction. And the negative risks of BAC are fading drastically. I speculate that the Obama government is trying hard to push all these through in order to revive the big banks, so as to revive the economics, and so as to be succeed in November. We will wait and see more things getting unfolded …
I bought some BAC warrants a yesterday and today.
About Timeless Investor
My name is Samual Lau. I am a long-term value investor and a zealous disciple of Ben Graham. And I am a MBA graduated in May 2010 from Carnegie Mellon University. My concentrations are Finance, Strategy and Marketing.
TimelessInvestor
Two great news for BAC
The storyline of BAC litigation continues to head to the right direction,
Firstly, A U.S. Appeals court has handed down a potentially important decision for
Bank of America, returning the bank’s landmark $8.5 billion mortgage-bond
settlement to state court after some investors had pushed to have it heard in
federal court.
Sanford Bernstein analysts called Monday’s ruling an “incremental positive
for BofA, as it likely narrows the scope of review that the settlement will
face, and increases the probability that it gets approved.”
Detailed news can be seen from WSJ.
The chance of $8.5 bil settlement to be approved increased significantly.
Secondly, Bank of America Corp., Wells Fargo & Co. and three other banks that
settled a nationwide probe of foreclosure practices this month will get a bonus
from the deal: protection for $308 billion of home-equity loans they hold.
Loss-sharing will break the logjam that occurs when banks drag their feet
processing modifications on mortgages that outrank their junior liens, said the
Obama official, who declined to be identified because this arrangement hasn’t
been made public.
“The roadblock to getting comprehensive modifications has been the efforts of these banks, the biggest servicers, to protect their second liens,” Wilmarth said. “To only suffer losses on an equal basis as first-lien investors is a good outcome for them.”
Detailed news can be seen from Business Week.
I am not saying the problems with BAC are going away completely, but it seems like things are going into the right direction. And the negative risks of BAC are fading drastically. I speculate that the Obama government is trying hard to push all these through in order to revive the big banks, so as to revive the economics, and so as to be succeed in November. We will wait and see more things getting unfolded …
I bought some BAC warrants a yesterday and today.
About Timeless Investor
My name is Samual Lau. I am a long-term value investor and a zealous disciple of Ben Graham. And I am a MBA graduated in May 2010 from Carnegie Mellon University. My concentrations are Finance, Strategy and Marketing.