Report: Bank Of America Close To Paying $8.5 Billion Back To Securities Investors In Settlement

Report: Bank Of America Close To Paying $8.5 Billion Back To Securities Investors In Settlement

Bank of America is reportedly close to settling with investors burned by securities backed by mortgages from Countrywide Financial, which BofA acquired in 2008. The investors, including the Federal Reserve Bank of New York and Blackrock Financial Management, have been twisting the bank’s arm to get it to buy back ill-advised loans that defaulted during the subprime mortgage crisis. [More]

Fannie Mae, Freddie Mac No Longer Worthy Of The NYSE

Fannie Mae, Freddie Mac No Longer Worthy Of The NYSE

Federal Housing Finance Agency, which regulates Freddie Mac and Fannie Mae, announced today that the government-sponsored mortgage purchasers would delist themselves from the NYSE. [More]

Wall Street Hoped They'd Be "Wealthy And Retired" Before The House of Cards Fell

Wall Street Hoped They'd Be "Wealthy And Retired" Before The House of Cards Fell

If you’re wondering why all these supposedly smart people bought bullsh*t securities made up of pools of overpriced mortgages given to broke people with crap credit — it’s time for you to meet the rating agencies. Rating agencies are the folks who decide the “quality” of investments. They’re the ones who decided that these securities deserved a AAA (read: awesome) rating. Did they know that they were passing junk off as gold? Um, yeah, according to reports from Bloomberg and the New York Times. It looks like they sorta did.