This page has been archived and commenting is disabled.
Pimco, Blackrock And New York Fed Said To Seek Bank Of America Mortgage Putbacks
Putbacks, bitches! This headline that has just flashed, can not be right. Otherwise it would mean the New York Fed (and Bill Gross) is preparing to sink Bank of America with hundreds of billions of par MBS putbacks. It would however explain why PIMCO has been gobbling up MBS on margin in the past month as we highlighted. We will bring you more as we see it, because this could be a groundbreaking development.
Update: Blackrock joins too! The "soured mortgages" in question amount to $47 billion (to start). We are now just waiting for BofA to next demand TARP 2 and the circle jerk will be complete.
Update 2: Full Bloomberg story attached.
Reminder: Here is JPM's presentation on what the total putback risk is for the Big Banks. As the lawsuit seeks to putback $47 billion one wonders just how accurate JPM's estimate of a $55 billion max pain truly is...
Reminder 2: As our whistleblower pointed out earlier today, the issue of misrepresentation of all mortgage related items (not just titles) is precisely what would destroy the mortgage originators and servicers. Today, Countrywide, its former orange CEO, and Bank of America are the first to realize just how correct he or she was.
Pacific Investment Management Co.,
BlackRock Inc. and the Federal Reserve Bank of New York are
seeking to force Bank of America Corp. to repurchase soured
mortgages packaged into $47 billion of bonds by its Countrywide
Financial Corp. unit, people familiar with the matter said.The bondholders wrote a letter to Bank of America and Bank
of New York Mellon Corp., the debt’s trustee, citing alleged
failures by Countrywide to service the loans properly, their
lawyer said yesterday in a statement that didn’t name the firms.Investors are stepping up efforts to recoup losses on
mortgage bonds, which plummeted in value amid the worst slump in
home prices since the 1930s. Last month, BNY Mellon declined to
investigate mortgage files in response to a demand from the
bondholder group, which has since expanded. Countrywide’s
servicing failures, including insufficient record keeping, may
open the door for investors to seek repurchases by bypassing the
trustee, said Kathy Patrick, their lawyer at Gibbs & Bruns LLP.“We now are in a position where we have to start a clock
ticking,” Patrick, who is based in Houston, said today in a
telephone interview.MetLife Inc., the biggest U.S. life insurer, is part of the
group represented by Gibbs & Bruns, said the people, who
declined to be identified because the discussions aren’t public.
TCW Group Inc., the manager of $110 billion in assets, expects
to join BlackRock, the world’s largest money manager, and Pimco,
which runs the biggest bond fund, in the group, the people said.Countrywide also hasn’t met its contractual obligations as
a servicer because it hasn’t asked for repurchases itself and is
taking too long with foreclosures, either because of document or
process mistakes or because it doesn’t have enough staff to
evaluate borrowers for loan modifications, Patrick said. If the
issues aren’t fixed within 60 days, BNY Mellon should declare
Countrywide in default of its contracts, she said.Trustee Duties
“The letter states a demand directed to Countrywide to
cure the defaults,” said Kevin Heine, a spokesman for BNY
Mellon. “It does not ask BNY Mellon to take any action. BNY
Mellon will continue to perform its duties as trustee.”Charlotte, North Carolina-based Bank of America will
“defend our shareholders” by disputing any unjustified demands
it buy back defective mortgages, Chief Executive Officer Brian T. Moynihan said today.Most claims “don’t have the defects that people allege,”
Moynihan said on Bloomberg Television, referring to so-called
putbacks, in which guarantors or investors in mortgage-backed
securities ask to return bad loans. “We end up restoring them,
and they go back in the pools.”Mark Porterfield, a spokesman for Newport Beach,
California-based Pimco, Brian Beades, a spokesman for New York-
based BlackRock, and Peter Viles, a spokesman for Los Angeles-
based TCW, declined to comment.John Calagna, a spokesman for New York-based MetLife,
didn’t immediately return messages seeking comments. Jeffrey V.
Smith, a spokesman for the New York Fed, declined immediate
comment.“We continue to review and assess the letter, and have a
number of question about its content, including whether these
investors have standing to bring these claims,” Bank of America
Chief Financial Officer Charles H. Noski said today on a
conference call with analysts. “We continue to believe the
servicer is in compliance with the servicing obligations.”
»
- 45126 reads
- Printer-friendly version
- Send to friend
- advertisements -
Is it a sequoia tree that grows into the clouds?
No. It's a condyloma accuminata (vegative perianal wart) growing on Bernanke's butt
Kind of looks like Fantastic Mr. Fox's tree home.
Mr. Fox: [in a cellar with many of the other animal characters] Allright, let's start planning. Who knows shorthand?
[Linda raises her hand]
Mr. Fox: Great! Linda! Lutra Lutra - you got some dry paper?
[she holds up some paper]
Mr. Fox: Here we go. Mole! Talpa Europea! What d'you got?
Mole: I can see in the dark.
Mr. Fox: That's incredible! We can use that! Linda?
Linda Otter: Got it.
Mr. Fox: Rabbit! Oryctolagus Cuniculus!
Rabbit: I'm fast.
Mr. Fox: You bet you are. Linda?
Linda Otter: Got it.
Mr. Fox: Beaver! Castor Fiber!
Beaver: I can chew through wood.
Mr. Fox: Amazing! Linda!
Linda Otter: Got it.
Mr. Fox: Badger! Meles Meles!
Badger: Demolitions expert.
Mr. Fox: What? Since when?
IT AIN'T OVER TILL THE PIMPCO SINGS BITZCHES!!!
AND WHERE THE FUCK IS THE PPT?!!!
Gold just imploded on this news.
Now the Euro is getting blowtorched.
I"m OUT...
damn, my banks I bought last friday are back at fridays levels...
and silver just turned into aluminium...
BAnks? My my you do have some major Angus Youngs.
Still time on ZION and GS for those alseep in the theatre.
That's definitely the most expensive aluminum I've ever seen.
Hey, I feel like a prophet.
Yesterday's Post header on my blog..
An Opportunity and a Golden Warning…
Uh...huh....
I called it yesterday!
ORI
http://aadivaahan.wordpress.com
I am prophet and I called the 10P move from 1080 six weeks ago and last weeks NDX max pain trade. WFC.
It's why I said I only feel like one!
;-)
ORI
http://aadivaahan.wordpress.com
Gold Crash Caller Extraordinaire.. ;-)
I"m OUT...
Welcome back to the team.
Funny, my Springfield SOCOM just went up 5% in value.
Jeremy Siegel on CNBC now saying BUY STOCKS!!! Bulls beware...
Fed exit strategy
More like Turbo Timmay's plan to get Bernanke to cough up QE2.
Im just waiting on B cup Burnette to tell us not to fall for the shakeout...
a "B cup" shakeout... there's some market imagery.
Mannish-boy Burnette will say buy China lead...
I only trust D-stacked CNBC Anchorettes...
Keep waitin' on 'em to use Leo's line that it's e-ville speculators like George Soros just floating rumors to scare the little guys out of their stocks so they can get even longer.
Confucius Say: "All Ponzi work until Black Dragon Appear"
Well boys and girls it appears it's time
for the PPT to earn their money.
P.S. Next time you give Bill Gross inside info make sure he doesn't do what Thieves do best Ben.
LFMAO. I think I actually got that fortune once in a cookie.
Dive, Dive!
JIM CRAMER SAYS TO BUY BOFA!!!
buy, buy, buy
damn... no wonder it's down 2.5%... he jinkxed it...
Yeah, and Jim (C)Reamer said to buy Bear Stearns, and that it had "sound fundamentals", three days before they crashed. If that meth-addicted, ADD-afflicted monkey in a clown suit (or is he a clown in a monkey suit?) told me that the sky was blue, I would bet my life savings that it was actually orange.
Bad day for John Paulson, he must be nervous looking at the unfolding scenario .... Gold down 3% and the TBTF banks looking like they could be completely phucked all over again!
My guess "he" was the among the high volume sellers from last week.
and don't forget, he's probably shitting bricks over the idea that the courts may find that the underlying reference assets for his big short were fraudulent assets, thereby making his big CDS trade null and void. He could be ruined....
One can only hope. That he still walks the streets as a free man is what amazes me.
I would guess that walking the streets is something he desperately avoids. Next it could be standing within 20 feet of windows.
Market rallied all last week with this threat out there................
This was linked by Karl Denninger on his site last night. It has Countrywide-issued RMBS list.
http://www.prnewswire.com/news-releases/institutional-holders-of-countrywide-issued-rmbs-issue-notice-of-non-performance-identifying-alleged-failures-by-master-servicer-to-perform-covenants-and-agreements-in-more-than-47-billion-of-countrywide-issued-rmbs-105221854.html
Wow ! Funny. The details were in the public domain YESTERSDAY !
Oh, and did Bill Gross have anything to say on the matter when he was on CNBC earlier?
Herr Commandant Denninger of Stalag MarketTicker does occasionally provide some useful forensic analysis of the crimes of the politico-financial power elite, even if he fundamentally supports them in their corrupt and unsustainable ponzi monetary scheme.
trend break on SPX 60 minute chart going back to Aug 31/Sep 1. For bulls, 1150 is the iron curtain
I say 1142, but anything above 1120 keeps the bull alive.
BoA really ate a shit sandwich when they ate Cuntreewide, didn't they? And who made them eat that sandwich, hm? Class, anyone remember?
Oooh! Oooh! Oooh! <raises hand>
The Fed?
Wait, that was one of those rhetorical thingies, wasn't it?
The other Paulson...
Mozillo just in time...
LMFAO... Cuntreewide
I always knew Tangelo was a snatchy-snatch...
You had me at 'shit sandwich'!
Exactly what I've been thinking.
JPM will own BAC when this all said and done. This has been their plan all along.
Me, Me! Same guys who made them eat Merrill?
Paulson, Bernanke?
....yes. How can you have any pudding if you don't eat your meat ??
Ah good, been waiting for some more fireworks. Glad to see things are going to be extra interesting going into the election season. Nothing says good election theater like a crisis.
BAC is a Made Man - The order to Whack must have come from the top!
+ 1
Somebody needs to tell Jeremy Siegel that mean reversion is not a fundamental reason to buy stocks...
but it worked so well for LTCM when they bet that bonds would "revert to the mean".
Rally for TARP2 is about to commence. All Aboard!
Lame duck legislation and out going Super Douche Chris "TARP2" Dodd will lead it...
Dodd is a "Friend of Tangelo" you know...
Sheeple will take it as always...
I've been saying I expect this lame duck session to be a wild ride. After all they have nothing to lose and everything to gain. It's like being fired from your job, but the boss lets you load up all the stuff you can steal on the way out. Not bad if you can get away with it.
are the same analysts at the said shops who loved the collateral on the way up evaluating the potential (realized) embedded loss? Very probable
Good thing the SEC got the little matter with Angelo Mozilo all worked out last week -- how conveeeeeeeeennniiiieeeennnttt
Exactly. Not only the payoff, but we'll never get to hear all the little details that might have been brought to light in court.
What a complete bunch of bullshit.
Yes - the SEC always looking out for the Small Investor to make certain that the playing field remains level -- now - back to porn
It's no simple coincidence.
That was the civil suit. There is also a criminal suit to be resolved. The standard of proof is higher in the criminal suit. He settled without admitting to anything in order to protect his standing in the criminal suit. Any admissions made in the civil suit would have been admissible in the criminal suit. Now the criminal suit has to prove from the bottom up.
Yet the bastard Angelo Mazilo is laughing all the way to the bank. Where's the perpwalks?
I would like to order a super sized pomo for tomorrow, please.
It comes with noodles. You like?
TARP2 rolling in like a CAT-5 HURRICANE.
And Federal Reserve in 3, 2, 1
Markets end green.
Remember 08'? 1,000 point intra-day reversals on the regular?
-165 Dow below 11,000...
If SPY is still down by more than 2 percent today, will they be cancelling all trades for the day?
I'm thinking they may need to cancel all BAC trades at some point in the near future.
BAC is going down folks.
Since 19.84 this April and 53.87 in Oct 2006...
Irony in the fact that MetLife was itself downgraded by Moody's last week because of its own servicing unit issues. More irony in this coming after BoA just pooh-poohed the whole issue in its announcement. But this is the party we saw coming, and the numbers ain't in the single digits of billions. Next: Servicers fight putbacks, and investors sue sponsors for securities fraud. Bob knows what I'm talkin' about.
Please, no starch with irony.
Now's the time to get ahead of the banksters' "bonuses," since it is so obvious that their companies are gonna need that money.
As for the little guys, can anybody say NO REFI's that will let the banks off the hook? J6P still thinks the tsunami of grace that's been rolled his way in REFI offers is what it appears to be.
Ya, but watch 'em take the bait.
Meanwhile Angelo lying on the forecastle asks "Would you mind rubbing some more Hawaiian Tropic on my back"
Well, this is sorta like a FemBot dilemna. Can't help BankOfIndia without hurting PimpCo; can't support PimpCo without throwing BankOfIndia under the bus. Yet, all FIRE pillars must be preserved. FemBot head asplodey.
why are metals getting crushed?
derivatives toilet paper.
... people selling to cover their asses?
Stocks, bonds, metals, food and energy are all just connected into the great risk on/risk off trade.
The fact that stocks and bonds can continue positive correlation together would be a very hard concept to grasp, if it weren't for seeing the blatant manipulation at hand.
Because QE ll just became QE ll lighter.
I wonder if this is the wave of private MBS investors voting to replace their servicers that Branch Hill predicted. I've read it generally takes holders of 25% of the issue to petition for a change of servicer. The point is, the servicer is responsible for representing the MBS investors in push-backs, but is usually also the same bank to which they would be pushing back the loans (clever, huh?). I would assume any vulture investor in private ABS would be looking for that 25% threshhold to change the servicer.
I don't understand what the Fed's role in this could be. The Fed owns public MBS, which is a different ball game. The GSEs handle the push backs, and if they don't, the GSE pays out to MBS holders 100%, and then Treasury bails out the GSEs, and then the Fed buys the Treasuries, that fund the bail-out of the GSEs' guarantees of the Fed's bad MBSs. Kind of like the old lady that swallowed the fly.
Bernie Madoff would be proud of the whole arrangement...
Oh right, forgot about the private MBS among those lovely assets the Fed paid face value for in its AIG and Bear bailouts. Yes, by all means, the Fed should push those back on BoA so it can declare the bailouts cost-free and then figure out some hopefully quiet way to bail out BoA later.
On my loan, MERS assigned the loan and trust deed to BONY Mellon, in June 2010. The assignment was to have been accomplished before May 1, 2007. The signer is an employee of BAC. Then, BAC, acting for the BONY Trustee for the loan securitization, signed a substitution of trustee. Then, the BAC employee, signed the notice of default on behalf of recontrust, the new trustee. recontrust is wholly owned by BAC. The notice of default reads that monthly payments in the amount of $0.00 were missed.
What does it all mean?
BAC uses robo-signers to cram mortgages into securitization pools long, long after the cutoff date, which destroys the REMIC tax status for the pool.
Also, since the loan and mortgage were not transferred timely pursuant to the prospectus, the 2010 transfer constitutes the transfer of an unregistered security, which is unenforceable under Utah law.
So now BONY Mellon will put the loan and mortgage back to BAC while my lawsuit proceeds for declaratory relief that the loan and trust deed are now unenforceable.
This isn't just a paperwork glitch. Destroying the REMIC tax status on a $465 million pool is going to cause some unhappy tax consequences. It will destroy the enforceability of the note and trust deed.
Good times ahead.
We have a winner! This is going bad on multiple levels.
More details on the bondholder demand:
http://www.tradingmarkets.com/news/press-release/bk_institutional-holders-of-countrywide-issued-rmbs-issue-notice-of-non-performance-identifying-alleged-1237759.html
A word to anyone with a mortgage, or a family member with a mortgage (mom & dad),
GET OUT THERE AND FIGURE OUT WHAT IS GOING ON WITH YOUR "LOAN"!
You will have much better control and understanding of your place in the universe if you know who, what and when your property is being used in this mess. It doesn't mean you are getting a free house, but with certainty it means that somebody is going to come sniffin' 'round your home to figure out if you are going to be the next sucker. Maybe that refi or modification is going to nullify your position, maybe some creep is coming through the door while you are at work, maybe you have been denied HAMP or other monster, but with a little knowledge you can break the log jam. You better circle the wagons, because there is going to a ton of money poured into "solving" this monster and as we have all seen the guy on main street pays again and again.
Discharge your debt immediately under the Article 3 of the Uniform Commercial Code.
I think it's time to adopt the means and the measures of the Foreclosuregate. OK, I posted on the first page here. The same article is over on the contributors page:
http://www.zerohedge.com/forum/asymmetrical-warfare-mill-wars-based-ucc-practice
PHEW! I thought this might take the REITS into the negative. No way.
IYR and the lot are still well into the green!
My fucking god.
Don't worry Boiler I know how you feel but REITs are worse off than banks. They are to the hilt with Jumbos and but do not have access to ZIRP. The moment the Corps have to downsize all their lucrative rents are out the window and it's divi cut time again.
And Mozilo walks with a parking fine and a slap on the wrist!
QE3 NOW!!!!!
Hmmmpf! Mozillo settled with SEC for 50mil of his own, and I think 20 mil from other source. Not bad when he pulled in almost 500 mil from the inception of his little racket. See? crime does pay! Better yet, always be the first to settle- avoiding the mob wrath which will follow when it becomes clear that he and others are getting away scott free-- and if no civil conviction, then no criminal action can follow.? Help me on this all you lawyers out there.
"Help me on this all you lawyers out there."
You want help? From lawyers?? For free???
You've got to pay a lawyer lots of money to get valuable useless advice!
Don't you know it Dudette!
I spent 90G on my divorce in 1991, and then wound up trying to sue my 4 attorneys for malpractice, which even the trial court "concluded" had occurred. But for naught, as my losses, and thus any chance to demonstrate these at trial were thrown out by summary judgement as "speculative". KY Mitchell v Transamerica is the get out of jail free for lawyers in KY. So as a doctor, I should be free from medical malpractice because it is speculative whether the patient would have done better if I hadn't done the wrong procedure, on the wrong part of the body etc.
Don't you know it Dudetteness!
I spent 90G on my divorce in 1991, and then wound up trying to sue my 4 attorneys for malpractice, which even the trial court "concluded" had occurred. But for naught, as my losses, and thus any chance to demonstrate these at trial were thrown out by summary judgement as "speculative". KY Mitchell v Transamerica is the get out of jail free for lawyers in KY. So as a doctor, I should be free from medical malpractice because it is speculative whether the patient would have done better if I hadn't done the wrong procedure, on the wrong part of the body etc.
Your failure to win in court is the intended outcome. I posted an interesting article on the first page here that should clarify your situation, though it does focus on foreclosure.
The same article is over on the contributors page:
http://www.zerohedge.com/forum/asymmetrical-warfare-mill-wars-based-ucc-practice
"Countrywide also hasn’t met its contractual obligations as a servicer because it hasn’t asked for repurchases itself...."
Anybody else catch that part? So, for which sponsors does CW service? List those banks and you will know who gets invited to this party next.
Jim Willy said a month ago that BAC had Failed! Were just seeing the Mkt get the newz now.
Excuse me if someone already pointed this out - but isn't this just a covert way for the fed to start scrubbing the banks' balance sheets? Instead of creating one giant "bad" bank, they are going to make the big banks slowly buy the toxic stuff back using the Fed's own money....
Party pooper
Thereby transforming all of America into a bad bank. Splendid
.
GREENSHOOTS!!!
ZH good work on the original story about PIMCO "gobbling up MBS on margin in the past month." That's why I read this blog, to find out what I can't elsewhere.
Ditto +10
CNBC just declared BAC a raging buy.
LMFAO. Awsome!
Poor B of A – just when they were feeling the love and taking steps to help the little guy.
Fin Reg making us stop charging some fees – so we figure out new and improved ways to screw our customer – all to help our relationships with our valued customer.
How can this jackass say this with a straight face.
http://www.cnbc.com//id/15840232?video=1619139171&play=1
Botox?
B of A are one of the worst for dinging you for inappropriate fees and would rather lose a customer than admit they've made a mistake, much less correct it.
Watching them sink into the swamp will be very gratifying, to say the least.
Sayanora, Bank of Lynching Countrywide!
Relax, the magic futures will rise overnight and this nasty sell off will only be a bad dream. Magic index futures to the rescue.
I wonder how Lloyd and Jamie are going to divide the corpse of BAC? Investment to Lloyd and retail to Jamie? Some hybrid? Does Vikram come crying to Lloyd for some free handouts?
Jamie and Vikram are next in line for the plunge...
How funny will it be when Bill and B-rock collect putbacks for the same origination from each of these assholes?
I think they are trying to extricate ML before it is too fully absorbed. Wells is first on the squeeze list, then BAC.
feeding time for the squid again.
PIMCO IS HOLDING SHIT
and the GOVT IS TRYING TO MAKE TAX PAYERS EAT SHIT !!!!!
Yep that about sums it up! Nothing but a bunch of shit, people can say this shit is worth more than that shit, or buy some other shit on margin because it will be more desirable shit...bottom line its all just a pile of shit!
which, when properly composted, decayed and left to "cure" makes wonderful humus to grow next year's crop, after the hard, cold winter....
:)
Your larger spoons will be arriving in the mail soon.
Bernanke, meet Black Swan!
This is a Bernanke generated event. Nothing out of the blue about this. Simply generating vehicles to move the ball
The Feds can't stop state governments and private parties from bringing suit aagainst the TBTF banks. TARP ll is political suicide. Ben has finally figured out that pissing off the TBTF banksters will hurt less than a currency war and pissing off the rest of the world. Geithner has gone turncoat on the TBTF banks as he realizes the only way to keep his previous promises to the public is to spank the banks. Everyone that counts has finally figured out that its easiest to point the fingers at the bad guys. When they pose a systemic threat, VIOLA, Resolution! TBTF banks are wound down and broken up, we lose a buttload in securities and derivative exposure, but the system does not collapse; it resets and things start moving again.
Hang on kids, this maybe the best E-ticket ride of our lives!
As the Jews say, from your lips to God's ears, but don't pop the champaign just yet.
ZH just had a flash crash... must be getting close to something big....
OK Fellow ZHers. Serious question: Do I continue to pay my BAC mortgage? Or do I ask to "see the note"?
Why wouldn't you wanna see the note? You have to make somebody shows you the note--otherwise you could be getting flim-flammed. I'd continue to make payments for a couple months, maybe, if I had the money, but don't you wanna see your damn note????
I think we're in violent agreement. To reiterate, I'm wondering whether to stop paying my BAC mortgage since there's a decent chance the chain-of-title might be broken. Result = free house for me.
So should I call BAC and ask them to "show me the note" and stop making payments? Of course I can afford the mortgage and this is completely dishonest behavior and I would be taking advantage of BAC during their 'stressful time'. Maybe I should consider their situation and give them some slack, you know, like they do for us when we're down </sarcasm>. Afterall, they felt ok to rape me on ATM charges for the past 8 years!
But what is that "decent chance"? Seems to me that, without having gotten the note, you're a little late to the game, which is a shame under the circumstances.
I think the answer is Do you feel lucky and is the downside worth the upside to you?
If there is a break in the title chain ...
what happens to your 'home ownership' after you finally PAY OFF THE MORTGAGE?
That's what I'm wondering.
"Result = free house for me."
Or, someone else................yeah,I think I would GET a copy of the ORIGINAL Title Deed, before I gave em one more dime.
If you bought in the past 10-20 years, you overpaid thanks to their frauds. Dang straight you should get your note and check whether MERS had their hand in it once you got funded. There is no dishonesty in playing their game with their rules.
Be careful. Don't stop payment without consulting an attorney with experience in these matters. You'll need some proctology exam tools to be used first to see what is going on with your financing. It is likely you ahve good title, that the deed is good. The question is whetther the mortgage is enforceable. The note is probably good too.
Unless you wanna turn your home into your lotto ticket. But the payout just isn't enough to justify playing blindly . . . unless you're going to default, anyway, imo.
I think it's time to adopt the means and the measures of the Foreclosuregate. OK, I posted on article about this subject on the first page here. The same article is over on the contributors page:
http://www.zerohedge.com/forum/asymmetrical-warfare-mill-wars-based-ucc-practice
Hold your fire. The big wins are coming upstream, on the bonds. They will fight like hell on foreclosures, at least for a while. They have no choice.
There may be some clarity after the election. Stay tuned.
Well you want to see what their response is before you stop paying.
The Feds can't stop state governments and private parties from bringing suit aagainst the TBTF banks. TARP ll is political suicide. Ben has finally figured out that pissing off the TBTF banksters will hurt less than a currency war and pissing off the rest of the world. Geithner has gone turncoat on the TBTF banks as he realizes the only way to keep his previous promises to the public is to spank the banks. Everyone that counts has finally figured out that its easiest to point the fingers at the bad guys. When they pose a systemic threat, VIOLA, Resolution! TBTF banks are wound down and broken up, we lose a buttload in securities and derivative exposure, but the system does not collapse; it resets and things start moving again.
Hang on kids, this maybe the best E-ticket ride of our lives!
I wouldn't count the TBTF out yet. Each one is basically a doomsday weapon, and lets face it the guys who are going in to disarm it have all the skill, knowledge, and dexterity of a chimp on PCP. So even if they are allowed to fail, which is unlikely in my mind, they are likely to blow up and basically bring down the system.
Totally agree on the ride of our lives though!
They won't be allowed to fail...they pose a systemic risk. However, they will cease to do business the way they have been doing business. The e-teams will be fired and they will be broken up. Better for all.
I think it's time to adopt the means and the measures of the Foreclosuregate. OK, I posted an article about this here on the first page. The same article is over on the contributors page:
http://www.zerohedge.com/forum/asymmetrical-warfare-mill-wars-based-ucc-practice
of course PIMPco will be buying every MBS that is not nailed down that happends to belong to BofA. Why not? SINK THE BATTLESHIT....SINK EM. Before they start the 5 dollar transaction fee on ATMs.....by next year. bet!
of course PIMPco will be buying every MBS.
They already have been for the past few weeks.....
While managing several hundreds of billions more for the fed. PIMPco does have fiduciary obligations after all..... :D
This is why Ben was going full Pomo .. pure fear and panic.. I luv it.
Otherwise it would mean the New York Fed (and Bill Gross) is preparing to sink Bank of America with hundreds of billions of par MBS putbacks.
NO, it only means that they want first dibs on QE2 money...otherwise the TBTFs...would fail.
QE2 is only a plutocrat money grab through their shill banks & HFs...this ain't so deep as a well.
Yes, this is total bullshit. Pimco, Blackrock, etc. have no legitimate expectation of cashing out on putbacks. This is just more hostage taking of the alleged TBTF. All orchestrated. Fully planned method of cramming QE-HUGE down an already strapped tax payers throats.
I call 'bullshit'.
This goes way, way deeper than BAC...MERS is the Holy Grail...A huge QE ll is not the answer and Ben finally figured it out...