Countrywide's Mortgage Document Errors May Doom Bank of America

Ahlevah · Nov 25, 2010

Testimony in a New Jersey foreclosure case decided last week may spell big trouble for Bank of America (BAC). If what one bank employee said on the stand proves to be accurate, paperwork problems it acquired when it purchased the failing mortgage provider Countrywide in 2008 could leave BofA on the hook for billions of dollars.

See full article from DailyFinance: Countrywide's Mortgage Document Errors May Doom Bank of America - DailyFinance

Bank of America stock is down about 43% from its 52-week high. The U.S. stock market seems to be shrugging off problems in the financial sector. I don't think it will do that much longer. The U.S. economy is built on credit, and banks that are under pressure don't issue many loans, assuming people want them in the first place.

buck · Nov 25, 2010

Ahlevah said:
Bank of America stock is down about 43% from its 52-week high. The U.S. stock market seems to be shrugging off problems in the financial sector. I don't think it will do that much longer. The U.S. economy is built on credit, and banks that are under pressure don't issue many loans, assuming people want them in the first place.

There is conflicting info as to wether the manager's testimony was accurate. However, if it ever comes to that, I would just suspect BAC to basically spin Country Wide off, which means CW would enter bankruptcy. CW is still a legally sperate entity, according to some of the bank analysts that i've read.

CharlieK · Nov 25, 2010

I certainly pray there are no more 'so called' bail-outs.

Countrywide's Mortgage Document Errors May Doom Bank of America

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