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Bank Of America Reports No Day With Trading Losses In Q3, Announces MBS Complaints Over $375 Billion Worth Of Securities

Tyler Durden's picture




 

In its just released 215 page 10-Q, BofA announced it has just overtaken Goldman, and where even Goldman ended up having days with trading losses, Bank of America was perfect. Gotta love all those 3rd grade BofA prop traders (as an FYI to all, BofA is where you go where the safety school equivalent of prop trading dumps you). What is more interesting is that the seemingly flawless trading machine which is BofA has just disclosed it has received a complains by the Chicago FHLB, Cambridge Place, and Charles Schwab (and others) that allege misrepresentations in over $375 billion worth of RMBS. It appears the FRBNY is not the only entity that now is gunning for the scalp of the last remaining flawless frontrunner.

The Corporation and affiliates, legacy Countrywide entities and affiliates, and legacy Merrill Lynch entities and affiliates have been named as defendants in a number of cases relating to various roles they played in MBS offerings. These cases are generally purported class action suits or actions by individual purchasers of securities. Although the allegations vary by lawsuit, these cases generally allege that the offering documents for more than $375 billion of securities issued by hundreds of securitization trusts contained material misrepresentations and omissions, including statements regarding the underwriting standards pursuant to which the underlying mortgage loans were issued, the ratings given to the tranches by rating agencies, and the appraisal standards that were used in violation of Section 11 and 12 of the Securities Act of 1933 and/or state securities laws. The cases generally allege unspecified compensatory damages and in some instances, seek rescission. The Corporation has previously disclosed some of these matters under other headings, in its 2009 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010 and June 30, 2010, including Countrywide Mortgage-Backed Securities Litigation; IndyMac Litigation; Merrill Lynch Subprime-related Matters; and Federal Home Loan Bank of Seattle Litigation.

BAS, Asset Backed Funding Corporation, Banc of America Mortgage Securities, Inc., CSC, CWABS, Inc., CWALT, Inc., Merrill Lynch Pierce, Fenner and Smith, Inc. (MLPF&S), and Merrill Lynch Mortgage Investors, Inc. are among the defendants in an individual action, entitled Cambridge Place Investment Management Inc. v. Morgan Stanley & Co., Inc., et al., filed by Cambridge Place Investment Management Inc. in Massachusetts Superior Court, Middlesex County on July 9, 2010. Plaintiff asserts claims under the Massachusetts securities laws and seeks unspecified damages and rescission, among other relief. On August 13, 2010, certain defendants removed the case to federal court. On September 13, 2010, plaintiff moved to remand the matter to state court.

BAS, Bank of America Mortgage Securities, Inc., Bank of America Funding Corporation, CFC and CWALT, Inc., MLPF&S, and Merrill Lynch Mortgage Investors, Inc. are among the defendants named in an individual action filed by The Charles Schwab Corporation in Superior Court California, County of San Francisco. The case was filed on July 15, 2010 and is entitled The Charles Schwab Corporation v. BNP Paribas Securities Corp. and the amended complaint alleges violations of the Securities Act of 1933, the California Corporate Securities Act, the California Civil Code, and common law in connection with various offerings of MBS and seeks unspecified damages and rescission, among other relief.

On October 15, 2010, the Federal Home Loan Bank of Chicago (FHLB Chicago) filed a complaint entitled Federal Home Loan Bank of Chicago v. Banc of America Funding Corporation et al., in the Circuit Court of Cook County, Illinois County Department, Chancery Division against the Corporation, Banc of America Funding Corporation, BAS, CSC and MLPF&S, among other defendants, asserting claims for violations of the Illinois Securities Law, as well as negligent misrepresentation under Illinois common law in connection with various offerings of MBS. FHLB Chicago filed a second complaint on October 15, 2010 entitled Federal Home Loan Bank of Chicago v. Banc of America Securities LLC et al., in the Superior Court of the State of California County of Los Angeles, Northwest District against BAS, CSC, CFC, CWABS, Inc., CWALT, Inc., CWMBS, Inc., among other defendants, asserting claims for violations of the California Civil Code, California Corporation Code, Illinois Securities Law, Sections 11, 12 and 15 of the Securities Act of 1933, as well as negligent misrepresentation and rescission of contract in connection with various offerings of MBS. The complaints filed by FHLB Chicago make allegations similar to those in the Federal Home Loan Bank of Pittsburgh and Federal Home Loan Bank of Seattle actions and seek unspecified damages and rescission, among other relief.

What is odd is that the complaint was filed on October 15, and we are learing about it only 20 days later. Surely $375 billion is material even by Bank of Countrywide Lynch's estimates...

As for the mot hilarious piece of news: here is BofA trading days: the firm had zero trading loss days in Q3. In other words, Bank of America's India trading desk which according to rumors was recently outsourced to Calcutta, is now beating even Goldman Sachs at its game.

The chart below shows how Bank of America made on average $50 milion in trading each day in Q3.

And digging further into VaR, we find the following VaR chart by product group:

Trading Activities Market Risk VAR
    Three Months Ended     Three Months Ended     Three Months Ended     Nine Months Ended  
    September 30, 2010     June 30, 2010     September 30, 2009     September 30  
                                                                            2010     2009  
(Dollars in millions)
  Average     High (1)     Low (1)     Average     High (1)     Low (1)     Average     High (1)     Low (1)     Average     Average  
 
Foreign exchange
  $ 8.2     $ 13.4     $ 4.9     $ 21.5     $ 63.0     $ 6.6     $ 17.0     $ 30.8     $ 6.1     $ 25.6     $ 14.0  
Interest rate
    83.7       128.3       43.7       56.4       89.7       38.4       80.6       136.7       49.1       68.1       70.7  
Credit
    165.7       189.3       139.1       175.8       216.2       146.8       145.9       191.5       123.9       182.9       182.9  
Real estate/mortgage
    108.4       138.5       90.3       71.0       80.2       63.5       47.4       61.6       36.4       81.4       46.9  
Equities
    28.3       37.3       22.8       36.6       68.1       20.9       47.7       74.4       30.8       42.4       39.8  
Commodities
    16.8       20.4       12.8       23.2       31.7       14.0       19.4       26.3       16.7       20.7       20.0  
Portfolio diversification
    (226.1 )     -       -       (195.5 )     -       -       (198.6 )     -       -       (205.3 )     (184.5 )
                                                                   
Total market-based trading
portfolio
  $ 185.0     $ 212.0     $ 152.5     $ 189.0     $ 296.3     $ 123.0     $ 159.4     $ 225.1     $ 117.9     $ 215.8     $ 189.8  
 
(1)  
The high and low for the total portfolio may not equal the sum of the
individual components as the highs or lows of the individual portfolios may have occurred on
different trading days.

 

And here is an explanation on why VaR declined in Q3 from Q2. Somehow while the rest of the world was panicing about record correlations, BofA' Calcutta trading desk discoevered a way to "reduce correlations across businesses" - perhaps if they were to license and sell their discovery they would not have to worry about the hundreds of billions in MBS-related losses the world's second most toxic bank (after Citi) is about to incur courtesy of the lawsuit disclosed earlier.

The decrease in average VaR during the three months ended September 30, 2010 resulted from reduced exposures in several businesses. In addition, portfolio diversification increased relative to average VaR, as exposure changes resulted in reduced correlations across businesses.

Counterparty credit risk is an adjustment to the mark-to-market value of our derivative exposures reflecting the impact of the credit quality of counterparties on our derivative assets. Since counterparty credit exposure is not included in the VaR component of the regulatory capital allocation, we do not include it in our trading VaR, and it is therefore not included in the daily trading-related revenue illustrated in our histogram or used for backtesting.

As for the topic most important to everyone at this point, here is BofA's discussion of its MBS portfolio:

At September 30, 2010 and December 31, 2009, residential mortgages were $243.1 billion and $242.1 billion. During the three months ended September 30, 2010 and 2009, we retained $17.1 billion and $8.4 billion in first mortgages originated by Home Loans & Insurance. Outstanding residential mortgage loans increased $1.0 billion at September 30, 2010 compared to December 31, 2009 primarily due to the repurchase of FHA insured mortgages from Government National Mortgage Association (GNMA) securities and origination of FHA insured loans during the nine months ended September 30, 2010. During the three months ended September 30, 2009, we securitized $6.2 billion of residential  mortgage loans into MBS which we retained. There were no residential mortgage loans securitized into MBS during the three months ended September 30, 2010. For more information on these securitizations, see Note 8 – Securitizations and Other Variable Interest Entities to the Consolidated Financial Statements. During the three months ended September 30, 2010 and 2009, we had no purchases of residential mortgages related to ALM activities. We sold $129 million of residential mortgages during the three months ended September 30, 2010, all of which were originated residential mortgages. Net gains on these transactions were $13 million. This compares to sales of $17 million of residential mortgages during the three months ended September 30, 2009 of which $14 million were originated residential mortgages and $3 million were previously purchased from third parties. Net gains on these transactions were immaterial. We received paydowns of $9.2 billion and $11.5 billion during the three months ended September 30, 2010 and 2009.

Expect to see much more disclosure on this matter in the coming weeks and months as the topic of fraudclosure just refuses to go away.

 

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Fri, 11/05/2010 - 15:34 | 703427 max2205
max2205's picture

What!, no RICO?!

Fri, 11/05/2010 - 16:08 | 703516 Chris Jusset
Chris Jusset's picture

I'd love to see RICO invoked ... but RICO does not apply to securities fraud.  The question is how deep do these securities violations extend beyond this initial $375 billion of securities?  This could be huge.

 

These cases generally allege that offering documents for more than $375 billion of securities issued by hundreds of securitization trusts contained material misrepresentations and omissions, including statements regarding the underwriting standards pursuant to which the underlying mortgage loans were issued, the ratings given to the tranches by rating agencies, and the appraisal standards that were used in violation of Section 11 and 12 of the Securities Act of 1933 and/or state securities laws. The cases generally allege unspecified compensatory damages and in some instances ...

Fri, 11/05/2010 - 16:35 | 703569 hedgeless_horseman
hedgeless_horseman's picture

Oh Lord it's hard to be humble
when you're trading for BofA.
I can't wait 'till end of the quarter
'cause I get a big bonus they say.
To know me is to love me
I must be a hell of a man.
Oh Lord it's hard to be humble
but I'm doing the best that I can.
I used to trade for Merrill
but there I couldn't compete
along with all those other traders
who were also front runnin' Main Street.
Well I prob'ly could get me an algo
but my little brother would surely charge me.
Who cares, I can never be a loser
'cause the Treasury runs my company.
Oh Lord it's hard to be humble
when you're perfect in every way,
I can't wait to check my performance
cause the dollar is droppin each day
To know me is to love me
I must be a hell of a trader.
Oh Lord it's hard to be humble
when you work for a Sith Lord like Vader.
I tell all the grils I'm a trader,
a cowboy of sorts and so proud.
I could have Bugatti if I want to
but then I wouldn't stand out from the Wall St crowd.
Some folks say that I'm egotistical.
Hell, I don't even know what that means.
I guess it has something to do
with the way I fill out my Diesel jeans.
Oh Lord it's hard to be humble
when you're perfect in every way,
I can't wait to work for Lord Blankfein
cause God's work has even better pay.
To know Lloyd is to love him
the young boys say he's a hell of a man.
Oh Lord it's hard to be humble
but we're doing the best that I can.
The banks are doing the best that we can!

Send "Oh Lord It's Hard To Be Humble" Ringtone to your Cell

Fri, 11/05/2010 - 16:26 | 703572 MikeyKid
MikeyKid's picture

http://en.wikipedia.org/wiki/Racketeer_Influenced_and_Corrupt_Organizati...

Under the law, racketeering activity means:

 

Fri, 11/05/2010 - 16:41 | 703604 Careless Whisper
Careless Whisper's picture

i think this asian animation nails it

http://www.youtube.com/watch?v=RwetW1B3J8A

 

Fri, 11/05/2010 - 16:58 | 703636 Horatio Beanblower
Horatio Beanblower's picture

Very good.  Here is their take on gold - http://www.youtube.com/watch?v=cQyibfXonU0

Fri, 11/05/2010 - 17:10 | 703661 Chris Jusset
Chris Jusset's picture

Only CRIMINAL convictions for securities fraud can serve as a predicate act for RICO purposes.  As to CIVIL securities fraud being a predicate for RICO violaitons, see http://www.ricoact.com/ricoact/nutshell.asp:

 

There is one exception to this rule: since Congress amended the RICO Act in 1995, civil RICO claims cannot be predicated on securities fraud violations unless the defendant has been criminally convicted of a securities fraud violation

Fri, 11/05/2010 - 20:11 | 704081 anonnn
anonnn's picture

"... but RICO does not apply to securities fraud."

Heck of a leap there, Jussety.

Gotta link?

Fri, 11/05/2010 - 15:35 | 703429 braveneweconomy
braveneweconomy's picture

When you give the keys to the vault to these guys and let them take what they want, what do you expect? Some day I gotta get one of those keys.

Fri, 11/05/2010 - 15:36 | 703430 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Did not B of A announce poor earnings for Q3? If their prop traders won everyday in Q3, how deep in the hole is B of A?

Fri, 11/05/2010 - 15:36 | 703432 gwar5
gwar5's picture

No losses in Q3?  These guys are genius!

Fri, 11/05/2010 - 15:40 | 703443 buzzsaw99
buzzsaw99's picture

prop trading, is that what they call front running these days?

Fri, 11/05/2010 - 16:10 | 703512 AccreditedEYE
AccreditedEYE's picture

+1 They must have taken all of their POMO earnings from the previous quarter and rolled it into the newest program..

Fri, 11/05/2010 - 15:41 | 703447 Careless Whisper
Careless Whisper's picture

Still, he called the purchase of Countrywide a "one-time opportunity ... when the value is very attractive."

another brilliant move by ken lay

http://www.reuters.com/article/idUSN1130368420080114



Fri, 11/05/2010 - 15:49 | 703465 Hansel
Hansel's picture

lol, BofA with a perfect record, lol.  That is totally statistically likely in a free market.  And $375 billion is just a flesh wound!  :\ om

Fri, 11/05/2010 - 15:48 | 703466 carbon based unit
carbon based unit's picture

heavens to mergatroid!

 

let's see ... if they lost half of the cases represented by that sum ... and took the projected 50% loss on the par-backs ... that's only about $90b or so, give or take.  they'd still have a little market-cap left

Fri, 11/05/2010 - 15:48 | 703467 jus_lite_reading
jus_lite_reading's picture

BofA is already insolvent. But no worries here- the Fed will simply create more fiat money out of thin air. Pretend and extend. It always worked before. It will always work now. Pretend and extend.

Soon the aliens are coming, and they will buy our next generation, Perpetual BS Treasuries. Then we can sit back, watch Dancing With the Stars on our giant flat screen TV's while they are stuck holding the bag!

Fri, 11/05/2010 - 15:50 | 703471 kentfinance
kentfinance's picture

give me a portfolio with a bunch of self-marked MBS in them and i'll show you a loss-free quarter too

Fri, 11/05/2010 - 16:01 | 703496 Hansel
Hansel's picture

So true.  I wonder if, on bad days, BofA goes into the MBS market to buy crap at $.20 on the dollar, and then immediately mark it at par.

Sat, 11/06/2010 - 13:59 | 705329 ToNYC
ToNYC's picture

 

You got it goin' on now. Banking in Underland is the Tale to be told. When you got a bazooka in your pocket...wont get fooled again!

Fri, 11/05/2010 - 15:53 | 703479 Spalding_Smailes
Spalding_Smailes's picture

NEW YORK (Dow Jones)--Beazer Homes USA Inc. (BZH) swung to a fiscal fourth-quarter loss as the Atlanta-based home builder saw a steep drop in orders after a key tax incentive ended.(

The company said orders fell 21% from a year ago following the spring expiration of the federal government's tax credit program for first-time home buyers, which also sapped closing activity in the latest period. The company said they remain cautious about next year.

Fri, 11/05/2010 - 15:55 | 703486 jus_lite_reading
jus_lite_reading's picture

Yet the stock rallies, as do all HBs. Hip Hip Horray BEN! Give 'em our future NOW so they can still get bonues!

Fri, 11/05/2010 - 15:55 | 703484 Bill Lumbergh
Bill Lumbergh's picture

On a different note I really like the action in the S&P 500 today a few minutes before the close with vertical price moves.  At this rate Altucher may need to revise his target from 1,500 to 2,000 by end of 2011.  Maybe Robo can provide some boner charts tonight so we can see what dogs are really flying.

Fri, 11/05/2010 - 16:09 | 703518 Careless Whisper
Careless Whisper's picture

manipulation.

they're pumping F so it helps the illusion and they have a great story to tell on the GM roadshow.

Fri, 11/05/2010 - 16:54 | 703594 Bill Lumbergh
Bill Lumbergh's picture

Pumping Ford...but Wanger told us the automotive industry was experiencing a renaissance not seen since the onset of the Industrial Revolution.

LOL

Fri, 11/05/2010 - 15:56 | 703488 HelluvaEngineer
HelluvaEngineer's picture

Looks like they're locking in their huge profit for today in the last 5 mins of trading.

Fri, 11/05/2010 - 15:59 | 703492 John McCloy
John McCloy's picture

Incredibly it is as if they have the red telephone hotline to Ben's Desk

Fri, 11/05/2010 - 16:01 | 703495 wiskeyrunner
wiskeyrunner's picture

The ramp in the last 10 minutes is the buy the close sell the open gang. As we all know by now Sunday night the stock index futures will float higher as the offers get pulled, SPY will gap up on the cash open and we will drift sideways on light volume for 5 hours.

Fri, 11/05/2010 - 16:01 | 703497 SheepDog-One
SheepDog-One's picture

OT, but how about that last minute 40+ stick save on the DOW so it could end green? All just disgusting.

Fri, 11/05/2010 - 16:01 | 703500 docmac324
docmac324's picture

Acroynm change please: Not "BofA", rather BOA, as in BOA constrictor.  MUCH more appropriate.

TY

Fri, 11/05/2010 - 16:06 | 703504 AccreditedEYE
AccreditedEYE's picture

So THAT'S how they can afford to pay the dividend! The Calcutta Desk! It all makes sense now... ahahahaha

Fri, 11/05/2010 - 16:08 | 703515 tom
tom's picture

"We sold $129 million of residential mortgages during the three months ended September 30, 2010, all of which were originated residential mortgages. Net gains on these transactions were $13 million."

So that means they sold $116m worth of mortgages for $129m and a $13m profit. An 11% quick flip, not bad ...

except for the buyer. And you all must know who that is. Yep, it's you via your elected representatives, the FHFA and the GSEs. But it's "only" $13m.

Sat, 11/06/2010 - 08:02 | 704919 ZeroPower
ZeroPower's picture

Well, just to be clear with this analysis, this simply implies a profit based on the price of the securities that contained these mortgages. Its not a zero-sum game so the securities might have (considering QE2 and all) still increased in price, leaving the new holder of them with a paper gain for now as well.

Now, the issue of who owns the mortgages on the homes, yes i agree that is the main issue here and is probably not clear as with most other BAC mortgages and MBSs

Fri, 11/05/2010 - 16:10 | 703522 GoldmanSux
GoldmanSux's picture

Bring on the bonuses, Dude!

Fri, 11/05/2010 - 16:25 | 703525 hedgeless_horseman
hedgeless_horseman's picture

bumped

Fri, 11/05/2010 - 16:21 | 703564 Catalonian Capi...
Catalonian Capitalist's picture

Lol, gotta love this analysis of the fraudclosure scandal:

"While we cannot predict the ultimate impact of the temporary delay in foreclosure sales, or any issues that may arise as a result of alleged irregularities with respect to previously completed foreclosure activities, we may be subject to additional borrower and non-borrower litigation and governmental and regulatory scrutiny related to our past and current foreclosure activities. This scrutiny may extend beyond our pending foreclosure matters to issues arising out of alleged irregularities with respect to previously completed foreclosure activities. We expect that our costs will increase in the fourth quarter of 2010 and will continue into 2011 as a result of the additional resources necessary to perform the foreclosure process assessment, revise affidavit filings and make any other operational changes, which will likely result in higher noninterest expense, including higher servicing costs and legal expenses, in the Home Loans & Insurance business segment. In addition, process changes required as a result of our assessment could increase our default servicing costs over the longer term. Finally, the time to complete foreclosure sales may increase temporarily, which may result in an increase in nonperforming loans and servicing advances and may impact the collectability of such advances and the value of our mortgage servicing rights asset. Accordingly, delays in foreclosure sales, including any delays beyond those currently anticipated, our process enhancements and any issues that may arise out of alleged irregularities in our foreclosure processes could increase the costs associated with our mortgage operations."

Sufficient enough evidence to begin front-running Agency MBS from the FED.

Fri, 11/05/2010 - 16:28 | 703577 LongSoupLine
LongSoupLine's picture

Madoff, "I'm the ONLY one in fucking prison because my shit didn't go through the Fed!"

Sat, 11/06/2010 - 14:02 | 705335 ToNYC
ToNYC's picture

 

Absolutely he'd be in business today if he had learned that one lesson. To live outside the Law, you must be honest. He got thrown back.

Fri, 11/05/2010 - 16:31 | 703580 Fraud-Esq
Fraud-Esq's picture


It's time to CLAW-BACK the money that was stolen from this country.

95% of the bonuses given to Wall Street bankers from 2008 through today, 100% of the bonuses generated by fraudulent securitizations between 2002-2007. Seize it, art, property, bank accounts, whatever. Use that to pay back the Treasury, fire the executives and re-cap the banks under new regulated management.

Then claw-back all windfall profits, anything over 30% net, for government war and security contractors since 2001.

Probably find a few trillion all in all. 

There's your two great heists that broke the nation. Both done under Bush and Greenspan, ideological twins. Good luck getting your money, the media won't help you, the GOP won't, the tea party won't, the Dems won't.

Sat, 11/06/2010 - 09:28 | 704967 Bob
Bob's picture

A couple trillion at least.  Not to mention restoring some faith in the country. 

Fri, 11/05/2010 - 16:39 | 703596 Fraud-Esq
Fraud-Esq's picture

Who gets the kickback on post-FASB rule change bank bonuses? Congress, the FASB board or both?

Fri, 11/05/2010 - 16:47 | 703620 CustomersMan
CustomersMan's picture

 

   Interestin point, whats to stop them from buying the crap at $.20 or .10 or .02 and then setting a new price for the books at the quarter end. In view of what the FED is doing, that is not a stretch at all.

Fri, 11/05/2010 - 17:00 | 703643 JLee2027
JLee2027's picture

375 billion? Tip of the iceberg probably.

Fri, 11/05/2010 - 17:39 | 703711 slaughterer
slaughterer's picture


C'mon, BAC has a better legal department than mortgage division:

Bank of America Corp. (BAC) said a federal judge's dismissal of a complaint in a class-action suit over mortgage-backed securities would significantly reduce the number of offerings in dispute.

The company said the ruling, made in U.S. District Court in central California, would reduce the number of offerings at issue to no more than about 22 with a total notional amount of issuance of about $31 billion, down from about 427 and $352 billion, respectively.

Read more: http://www.nasdaq.com/aspx/company-news-story.aspx?storyid=201011051657dowjonesdjonline000639%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20&title=bank-of-america-mbs-complaints-dismissal-cuts-size-of-dispute#ixzz14RjmD0XS

Sat, 11/06/2010 - 12:38 | 705178 Fearless Rick
Fearless Rick's picture

Let's be real. It's not their legal department, it's having a disctrict court judge in you back pocket that really helps them in these matters. The judicial system in the cuntry is broken worse than the residential housing market.

Fri, 11/05/2010 - 18:47 | 703873 trav7777
trav7777's picture

it's amazing that these HFT prop traders have 1.000 batting averages and shit.  I mean, I was told by that guy on the other thread that I didn't know shit about how HFT worked when I said that they were CHEATING.

The only way that these big houses could have zero loss QUARTERS is if they didn't trade at all.  The probability of trades always going favorable is infinitesimal.  As in indistinguishable from zero.

Sat, 11/06/2010 - 08:07 | 704922 ZeroPower
ZeroPower's picture

Indeed, but 100% profitable trading quarters have been done before as well.

Id like to know how much of their profits come from liquidity rebates and other MM-associated discounts which basically provide you $ even on a losing trade.

If a firm is simply keeping quotes up on either side of the book, then they are more inclined to not care about the price action (up or down) so much as simply adding liquidity whenever it gets you the rebate (and whenever it is defined to 'add' and not 'take away' as per the exchanges rules).

Sat, 11/06/2010 - 14:04 | 705340 ToNYC
ToNYC's picture

 

Madoff never had a losing day until his pants came down.

Fri, 11/05/2010 - 22:22 | 704355 Buck Johnson
Buck Johnson's picture

Can you imagine having to buy back 375 billion in MBS, they have nowhere near the money to do that.  I think I know why it was important for this information to take so long to get out, they didn't want to spook the markets and two they where concerned about the elections.  They know that the republicans taking power may shield them with new laws.  The laws won't help the country in the long run, but they don't care about that they care about making sure they don't have to answer criminally and financially for their crimes.

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cheap uggs for sale's picture

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Sat, 11/06/2010 - 13:01 | 705220 bpilch
bpilch's picture

what i want to know is what kind of residential mortgage are they originating that someone is going to buy up 10 pts. They say they made 13mm on 129mm of mortgages sold. It's not like originating mortgages is done in the corner. It is a very competitive business. Seems a little fishy to me...

Sat, 11/06/2010 - 13:09 | 705237 -Michelle-
-Michelle-'s picture

I received a fee notice in my statement today.  They're charging $15 for "verification of mortgage."

Mon, 11/08/2010 - 10:56 | 707963 Grand Supercycle
Grand Supercycle's picture

My long term indicators continue to warn of USD strength and EURO weakness.

http://stockmarket618.wordpress.com

Do NOT follow this link or you will be banned from the site!