Bank of America liabilities bigger than expected

[steve2470]

http://www.bizjournals.com/dayton/news/2011/08/06/bofa-liabilities-bigger-than-expected.html

Bank of America told investors that its liabilities for mortgage repurchases from Fannie Mae and Freddie Mac could be worse than expected as the two companies become “more rigid” in dealing with the bank.

Fannie and Freddie are sending back to the bank many more faulty loans than BofA had anticipated.

And the stakes are high. The bank said in a filing this week with the Securities and Exchange Commission that the “ultimate resolution” of its housing-market liabilities “could have a material adverse effect on our cash flows, financial condition and results of operations.”

BofA (NYSE: BAC) said in January that it was taking a $2 billion charge to settle mortgage repurchase claims at Fannie and Freddie, which are also known as government-sponsored enterprises or GSEs. Observers at the time thought the bank’s true liability would be far greater. In Thursday’s filing, California’s largest bank indicated that may be the case.

[aquart]

1. BofA Too Big to Jail.

[JHB]

2. I'm shocked, SHOCKED, to hear this. n/t

[Iwillnevergiveup]

3. My God

I hope people are closing their accounts at BofA in record numbers.

[girl gone mad]

4. They should have been put into receivership in 2008.

We wasted a lot of money and gambled away valuable trust in the credit of our nation by propping up these broken and insolvent institutions.

[lib2DaBone]

5. Let them die ....

Spend $700 Billion on a jobs program.