The American International Group is planning to sue Bank of America over hundreds of mortgage-backed securities, adding to the surge of investors seeking compensation for the troubled mortgages that led to the financial crisis.
AIG says B of A (and its Countrywide and Merrill Lynch subsidiaries/acquisitions) "misrepresented" the quality of the mortgage portfolios.
That's not all, folks.
Fan/Fred have made a few demands, too:
New demands for refunds on soured loans from the two U.S.-owned mortgage firms are coming “in numbers that were not expected based on historical experience,” the company said in its Aug. 4 quarterly report to regulators....
B of A already booked $30Bn in expense for Fan/Fred claims; apparently that wasn't enough.
Denninger is going bonkers over this.
He kinda thinks that B of A cannot execute a 'firesale,' either.