All Commentary
Wednesday, October 20, 2010

Bank of America Urged to Buy Back Suspicious Mortgage Securities

“The Federal Reserve Bank of New York has joined a group of investors demanding that Bank of America buy back billions of dollars worth of mortgage securities that are plagued with shoddy documentation and lending standards, according to people familiar with the matter. Some of the most powerful investment groups in the country as well as the New York arm of the central bank are accusing one of Bank of America’s major mortgage divisions of cutting corners when it was issuing mortgages during the housing boom and as it has been foreclosing on struggling borrowers during the bust.” (Washington Post)

It’ll be a while before this swamp is drained.

FEE Timely Classic
“State Capitalism in Crisis” by Sheldon Richman