Securities insurers want BOA to pay 20 billion. Yes, BILLION.

[dixiegrrrrl]

Denninger reports:
http://market-ticker.org/akcs-www?post=169452


"here's the letter that was sent in early September to Bank of America CEO Brian Moynihan from the Association of Financial Guaranty Insurers (the monolines) arguing why they believe his bank will owe their members $10-20 billion for mortgage repurchases....

http://www.scribd.com/doc/39557057/Association-of-Financial-Guaranty-Insurers-Letter-to-Bank-of-America-1

*****************************************************************************************

That's gonna leave a mark.

edited to add:

I thought perhaps a summary of the legalese would be helpful:

The people who insured the "shitty" bonds are demanding BOA pay the value of the bonds.
They note that BOA is also being sued by The Federal Housing Financial Agency ( Fannie and Freddie, who actually do own ( but do not possess ) our mortgages,because Fannie and Freddie "bought" the worthless bonds from BOA ( remember TARP???)
So BOA is stiff arming the Feds and is now attempting to ignore the Insurers, about the bonds which have been revealed to be ...turds. Which BOA knew all along.

[Hawkeye-X]

1. Why not make it 2 trillion dollars

and see if BoA balks...

Hawkeye-X

[customerserviceguy]

2. Get your money out of the big banks, if you haven't done so yet

They're going to have to make it up on fees and such, and it's going to get brutal.

[dixiegrrrrl]

3. BOA services my mortgage.

I hate like hell giving them any money, but have no choice.
Naturally I have no idea of the owner of the mortgage.


I have a creeping suspicion that another bank bailout is on the way, what Bernanke has talked about with QE2, after the elections.
That would explain BOA and other banks foot dragging over the lawsuits against them.
If they can hang on for a few more weeks.......
That would seem to be the only thing that can save their greedy asses, don'tcha think?

[dkf]

5. I doubt there is any political will to bail out the banks.

What is scary is all the FDIC insurance at risk, even with the bonds they guaranteed.

[customerserviceguy]

6. If it happens, it happens during the lame duck session

Establishment Republicons and newly 'retired' Democratic congresscritters will indeed vote for a bailout package, if President Obama asks them to. Once he signs the bill, this economy belongs 100% to him.

[dkf]

4. This was dated in early September but we only see it now?

Fascinating.

[dixiegrrrrl]

7. I am finding lots of suits which were never reported.

Last spring the banks were being sued, and "coincidently" that is when the Notarization bill was first written.