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Two Down, Many More To Go - Bank Of America Sued For $31 Billion In Mortgage Losses

Tyler Durden's picture

  • And so it begins:
  • FHFA Sues Barclays over mortgage securities over losses for $4.9 billion: RTRS
  • FHFA Sues Merrill Lynch Bank of Americal over mortgage securities over losses for $30.85 billion: RTRS

Put a fork in Bank of Countrywide Lynch.

In the meanime, just about 10 more banks to go.


  • FHFA Sues Nomura for $2 billion in losses: RTRS

Update 2:

  • Citi... and so on.

Complete summary:

  • Federal housing finance agency sues Barclays PLC BARC.L - court filing
  • Federal housing finance agency sues Barclays over losses on $4.9 billion rmbs
  • Federal housing finance agency sues Bank of America Corp BAC.N - court    filing
  • Federal housing finance agency sues Bank of America Corp over losses on more    than $6 billion securities
  • Federal housing finance agency sues bank of America's Merrill Lynch unit over    losses on $24.85 billion securities
  • Federal housing finance agency sues Nomura Holdings Inc 8604.T - court    filing
  • Federal housing finance agency sues Nomura over losses on more than $2    billion securities
  • Federal housing finance agency sues Citigroup Inc C.N - court filing Federal housing finance agency sues Citigroup Inc over losses on $3.5 billion    securities

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Fri, 09/02/2011 - 16:03 | 1627634 SheepDog-One
SheepDog-One's picture

Looks like the Hamptons might be somewhat subdued this holiday weekend, meetings with high profile defense lawyers instead...probably MomoFader will be the only one out there wondering where all the Bellarus hookers and cocaine are.

Fri, 09/02/2011 - 16:11 | 1627677 greased up deaf guy
greased up deaf guy's picture

whoomp! there it is! whoomp! there it is!

Fri, 09/02/2011 - 16:12 | 1627699 AldousHuxley
AldousHuxley's picture

This is one way to make sure profit from ZIRP in banking sector comes back to government for they are going to need the money to fund a more dire priority: WAR WITH IRAN.

Fri, 09/02/2011 - 16:22 | 1627741 SheepDog-One
SheepDog-One's picture

Time to shear the small fry non elite banks for WW3!

Fri, 09/02/2011 - 16:49 | 1627861 Fukushima Sam
Fukushima Sam's picture

I wonder if Obama mentioned this upcoming development to the Geezer of Omaha back when he contacted him about the economy, right before the Geezer sunk billions into BOA?

Fri, 09/02/2011 - 17:15 | 1627993 Freddie
Freddie's picture

Hopefully Warner Buffert will be getting Nebraska corn cobs shoved up his arse.

Fri, 09/02/2011 - 17:41 | 1628134 franzpick
franzpick's picture

The 30 plus year fed-sponsored credit binge has made almost everyone look good, and made some like Warn N Buff look like geniuses.

The ongoing credit collapse will eventually demonstrate how little the oracle and other experts actually knew.

Sat, 09/03/2011 - 01:22 | 1628990 AldousHuxley
AldousHuxley's picture

last 17 years buffett's actively managed berkshire hasn't beat some big name corporations such as Johnson and Johnson or Oracle corp.


Buffett is now playing with political fire as his investments are dependent on government bailouts.


He is no saint.

Mon, 09/05/2011 - 08:21 | 1633761 fx
fx's picture

 90% of the posters here (and many of ZH's authors, too) are so full of hatred against BofA, Buffet  and co. that they lose any objectivity. ZH has become a weird place where gazillions of obscure people seem to have gathered for the sole reason to enjoy their  (and others') gloom-and-doom-posts Which, sometimes amusing and eloquent for most part lack knowledge, facts and are more and more pure pieces of heavily biased crap. Worthwile financial news and insights are by now far and few between, the quality of this page is descending in lock-step with the S&P, BofA's stock price and the credibility of the poltitical and economic elites. A few more weeks and I am done with this website - unfortunately.


Fri, 09/02/2011 - 16:19 | 1627733 hunglow
hunglow's picture

Throw the spinnaker sail out there! Which one? The whomper sail!

Fri, 09/02/2011 - 16:22 | 1627742 Living_Stone
Fri, 09/02/2011 - 16:14 | 1627678 dwdollar
dwdollar's picture

Nah...  Uncle Scam will sue them, then turn around and bail them out plus some.  Nothing but a side show to distract the herd from the meat grinder of QE3.

Fri, 09/02/2011 - 17:15 | 1627990 Pool Shark
Fri, 09/02/2011 - 16:02 | 1627636 caerus
caerus's picture

holiday weekend = one more day to worry

Fri, 09/02/2011 - 16:14 | 1627709 DoChenRollingBearing
DoChenRollingBearing's picture

Or look at this way:

= one more day to take $500 more out of their ATMs.

Fri, 09/02/2011 - 16:17 | 1627722 caerus
caerus's picture

i like...

Fri, 09/02/2011 - 16:19 | 1627734 tekhneek
tekhneek's picture

I'm emptying out my account with them tomorrow, permanently. A close friend of mine in Colorado went to take out 20K last weekend to exchange for gold, the lady at the counter told him "I can give you 4,500 now, but you'll have to come back every few days to get the rest." He left.

He went to I think 10-or-so branches to get 17, then he just went to several ATMs to get the remainder. He needed 20K because the bullion dealer was holding that much for him.

So, if you have any form of savings/checking w/ BAC I'd get it out this weekend too.

Sat, 09/03/2011 - 05:51 | 1629177 slewie the pi-rat
slewie the pi-rat's picture

L0L!!!  slewie said the same thing about all the banks on Stupor Bowl Sunday in Feb

then i started "suggesting" people cash out every retiement account they could, w/out being styooopid if the "extra-added" was real juicy, pay the taxes, and buy US Mint-produced gold & silver coinage

i told everyone on zH to stop trading, get every fuking dime outa every brokerage and buy more coins!

i want everybody in cash, coins, and supplies.  i don't give a flying fuk how "smart" you think you are!

...then, there was a tsunami in japan...

Fri, 09/02/2011 - 16:03 | 1627640 Chuck Bone
Chuck Bone's picture

In related news, Buffett poops the tub.

Fri, 09/02/2011 - 16:05 | 1627650 SheepDog-One
SheepDog-One's picture

Buffet to Becky- 'I pooped em'...

Fri, 09/02/2011 - 16:12 | 1627697 freethinker4now
freethinker4now's picture

Watch out Warren floating something new...ewwwwww

Fri, 09/02/2011 - 16:16 | 1627719 Spitzer
Spitzer's picture

I want to see Buffet take a bath on this deal, I cant wait. Its going to be so funny to see that sorry shill lose his balls.

Fri, 09/02/2011 - 16:34 | 1627798 hunglow
hunglow's picture

Becky: Did you have nuts yesterday?

Fri, 09/02/2011 - 16:18 | 1627727 nmewn
nmewn's picture

The "preferred" snickers bar ;-)

Fri, 09/02/2011 - 16:24 | 1627754 Fur Trader
Fur Trader's picture

"Diaper? I just met 'er"

Fri, 09/02/2011 - 16:25 | 1627755 Fur Trader
Fur Trader's picture

"Diaper? I just met 'er"

Fri, 09/02/2011 - 16:38 | 1627816 TuesdayBen
TuesdayBen's picture

Becky to Buffet - 'Oh, Warren, your poop is so cute and it doesnt even stink!'

Fri, 09/02/2011 - 17:42 | 1628141 Mactheknife
Mactheknife's picture

Uncle Warren said he thought he should be paying more taxes..after BAC is nationalized it will turn out he just did.

Fri, 09/02/2011 - 16:11 | 1627686 monmick
monmick's picture

Eww... rica!

Fri, 09/02/2011 - 16:16 | 1627705 pupton
pupton's picture

+1 That got a no bullshit "laugh out loud" from me...


Fri, 09/02/2011 - 16:16 | 1627718 azengrcat
azengrcat's picture

It gives new meaning to the term "mud bath"

Fri, 09/02/2011 - 16:26 | 1627748 Astute Investor
Fri, 09/02/2011 - 16:30 | 1627772 hunglow
hunglow's picture

Becky:  Here it is!  I doesn't smell like a Baby Ruth.

Fri, 09/02/2011 - 16:03 | 1627641 bankrupt JPM bu...
bankrupt JPM buy silver's picture

Just bought a ton of AIG puts for the long long weekend ahead.  I hope this gets to .99 again.

Fri, 09/02/2011 - 16:04 | 1627645 Id fight Gandhi
Id fight Gandhi's picture


Fri, 09/02/2011 - 16:11 | 1627687 tekhneek
tekhneek's picture

$20 NOV ain't bad. .73/contract...

Looking at the YTD gives me a chubby @.73/contract.

Sat, 09/03/2011 - 06:48 | 1629204 slewie the pi-rat
slewie the pi-rat's picture

nope.  that ain't bad! 

and we love hearing about how yer camel-toe reacts, too! 

now, this BAC account you are gonna just drain, tomorrow, and much is in there?  $80?  $800? $8000? 

your friend in colorado sure had a pile there (why?  well, he just hadn't made up his mind yet to spend it all on gold @ maybe $1800/ oz or whatever he had "agreed" to for them to "hold it for him" so he could run over with the CASH and "buy" it) and, boy-0-boy!, he was doing a cash deal b/c...?  why?  why tf would anybody go thru that to buy a "stash" about the 1/2 the size + of a $10 roll of 1/2 dollars?  why not just write a check for it?  and if his "guy" doesn't fuking like it, FIND ONE WHO DOES!  if you buy gold and pay with a check, you will get your gold asap the check clears!  and almost all face-to-face dealers will take a check and hold the gold,  NOT hold anything for you b/c you are "gonna come in w/ $20K cash"!!! 

if you're down in soCal, pretending to write sceen plays, here, this shit won't fly, darlin!  but maybe the guy will get shot and robbed, and the criminals will be tied to glenn beck, and...

wtf, go for it!!!




Fri, 09/02/2011 - 16:05 | 1627651 fuu
fuu's picture

JPM:Silver .800369685

Fri, 09/02/2011 - 16:04 | 1627642 Id fight Gandhi
Id fight Gandhi's picture

Who the fuck would hold anything over the weekend here?

Fri, 09/02/2011 - 16:08 | 1627666 azusgm
azusgm's picture

Holding CEF.

Fri, 09/02/2011 - 16:15 | 1627713 --Freedom--
--Freedom--'s picture


Fri, 09/02/2011 - 16:23 | 1627746 caerus
caerus's picture

sds qid dxd twm & some shorts & puts

Fri, 09/02/2011 - 16:39 | 1627814 greased up deaf guy
greased up deaf guy's picture

bac $7 puts 9/17
spy 100 puts 9/17 (very risky)
vix 40 calls 9/21 (not so much)

Fri, 09/02/2011 - 16:09 | 1627670 tekhneek
tekhneek's picture

Because I'm positioned to short BAC into November... as I kind of saw this coming? As in.. opened positions about a month ago?

But good question. I'd be shitting my pants if I had a long position open right now.

Fri, 09/02/2011 - 16:13 | 1627700 Id fight Gandhi
Id fight Gandhi's picture

I meant longs. Too much headline risk and a Monday off. But monkeys would usually align for a post holiday pop. I don't see it happening.

Fri, 09/02/2011 - 16:45 | 1627844 geminiRX
geminiRX's picture

It's been awhile since stepping back into the option arena....hoping to get paid on my nov 7.50 puts

Sun, 09/04/2011 - 13:59 | 1631631 moonstears
moonstears's picture

I sold 1/3 of my BAC Nov 7.50 puts Fri, rolled into Sep Puts at $6.00, strike. Wanted control of more shares, as I do see BAC in deep ca-ca. We shall see.

Fri, 09/02/2011 - 17:43 | 1628143 Cash-NonCash
Cash-NonCash's picture

Me too. BAC Puts = lots'o green so's I can get me some new ({}) !

I also hear the Iraqi Dinar will be revalued so there's that on top!

Yay markets!


Fri, 09/02/2011 - 16:10 | 1627674 mt paul
mt paul's picture

long silver


Fri, 09/02/2011 - 16:12 | 1627698 tekhneek
tekhneek's picture

I got rid of all my positions and put it into AGQ when it hit 195/share and then shorted BAC. I didn't see it going much lower, glad I didn't wait like I did last time...

Fri, 09/02/2011 - 16:15 | 1627711 caerus
caerus's picture

agq has funded many physical ag purchases for me

Sat, 09/03/2011 - 06:20 | 1629191 slewie the pi-rat
slewie the pi-rat's picture

L0L!!!  what a genius!  bullion, weapons, computer geek, ETFs shorts, longs, options, but not very much specific info such as date, price, size of trade, lenth of trade, date of close, price, profit.  not that anyone on this site would ever think you are pulling (almost) eveyone's leg.  unmercifully.  every fuking day, now, too!

of course, we know it is all true.  and if you gave the details, your brokers would see them and know who "tekhneek" is, but they would never be able to figure it our with what you already said. or the guy you recently bought the assault rifle from; or the FBI who get the sales slip, could not break your 'anonymity', and besides,  you may have bought it "under the table" who knows?    you just bought an AK and 400 rounds of ammo.  The End  then came back 3 hours later after a 45-comment string had developed under your comment and schooled some poor bastard who had "misunderstood" that this wasn't you FIRST "gun"!   and ORI just loves to cuddle up to you at the top of the strings with an agreeable comment and an ad placement to his website, sometimes, too, eh?  

you've been "short BAC".  we know you sold the naked calls the day before buffett ponied up the $5 Bil and the price went UP and w/in 48 hours you are trading BAC puts, but not saying long or short, or spread, or date, but just something like "5, 7, & 9" when asked "what strike"

very entertaining, and quite an absurd waste of time for everyone to listen to, but no worse than most "entertainment" and not totally unlike robo in some respects, with the female avatar (blythe for you!), the "attitude" and possibly a bit of an "act" of merging fantasy with "reality" and failing to "notice" that someone might "notice"

so hardly anyone "notices"!  what a country!

Fri, 09/02/2011 - 16:11 | 1627682 RmcAZ
RmcAZ's picture


Fri, 09/02/2011 - 16:29 | 1627765 cossack55
cossack55's picture

AK and Colt

Sat, 09/03/2011 - 01:27 | 1628994 AldousHuxley
AldousHuxley's picture

illegal aliens holding nuts over this weekend at your local home depot:

Fri, 09/02/2011 - 16:04 | 1627646 Caviar Emptor
Caviar Emptor's picture

All a prelude to stealth nationalizing the failed banks. On both sides of the pond. 

Fri, 09/02/2011 - 16:12 | 1627691 SheepDog-One
SheepDog-One's picture

Yep welcome to the New World Order.

Fri, 09/02/2011 - 16:05 | 1627653 Id fight Gandhi
Id fight Gandhi's picture

So I guess this is where warrens billions are going.

Fri, 09/02/2011 - 16:10 | 1627680 crazyjsmith
crazyjsmith's picture

They came to Buffett knowing he had to ante up, as he was a huge benefactor.  He gets to play in the arbitrage game, so he has to pay a "Fee" for doing so.  Nothing punitive about it.

Obama is about to blow his wad on this, his last bullet in the chamber for re-election. 

Everything fixed people, "Mission Accomplished".... now shut up, obey all orders, and Trust us!

Fri, 09/02/2011 - 16:17 | 1627723 Scarlo
Scarlo's picture

To be honest I think after Uncle Warren announced that rich folks need to pony up with more taxes they decided to let him lead the way. It's quite fitting considering he's the biggest cheerleader, and since a donation to the banks is the same as giving voluntary taxes.

Fri, 09/02/2011 - 17:09 | 1627955 crazyjsmith
crazyjsmith's picture

Donation, or more like a Tithe to the Chruch of Greed. 

Fri, 09/02/2011 - 17:51 | 1628185 azusgm
azusgm's picture

Uncle Warren was on an adventure trip in Alaska when LTCM needed to be bailed out. Couldn't be reached. Later, he said that he certainly would have fronted them some cash.

Buffet the bail bondsman.

Fri, 09/02/2011 - 16:30 | 1627654 Fascist Dictator
Fascist Dictator's picture

...and many more expected over the next hour......


as heard on CNBC


update: now HSBC....

Fri, 09/02/2011 - 16:05 | 1627655 earnyermoney
earnyermoney's picture

Tuesday's gonna be fun. I still think this is a threat to force the banks to sign the 50 AGs settlement by Obama's Labor Day deadline.

Fri, 09/02/2011 - 16:37 | 1627809 hunglow
hunglow's picture

I'm staying long & hard.  Wouldn't miss this physical ride.

Fri, 09/02/2011 - 16:06 | 1627656 shazbotz
shazbotz's picture

all one can say really is



Fri, 09/02/2011 - 16:31 | 1627775 Piranhanoia
Piranhanoia's picture

If you believe you will see the truth on CNN, you will be beaten to death in your sleep.  I hope this stimulates you to act to protect your mind from propaganda in the future.  

Fri, 09/02/2011 - 18:21 | 1628292 Freddie
Freddie's picture

All TV and all the media support Hussein.  Only fvkking retards watch TV and if you do then you support the Matrix.  TV and the media are worse than the gangster banks and the hussein thugs.

Fri, 09/02/2011 - 16:09 | 1627668 lolmao500
lolmao500's picture

They should be sued for all the felonies they have done. Citigroup too. Goldman Sachs too. JPMorgan too.

They've committed TENS OF THOUSANDS of felonies... yet no one goes to jail.... America doesn't have a rule of law.

Fri, 09/02/2011 - 16:10 | 1627672 MoneyWise
MoneyWise's picture

Lawyers will settle for 10% of original bill as usual.

FHFA should sue FED for lending off all of these money

for the US Banks, regardless of capitalization which then

loan to the people regardless of income.. And on and on..

Everyone should be sued in USA, cause their are all feeding up

off the same food chain.. Fed gets greedy--->Banks gets greedy -->

people gets greedy as well, buying few houses while working pizza


Fri, 09/02/2011 - 16:21 | 1627737 pupton
pupton's picture

Not preaching to the choir here but, isn't that what happens when the powers that be create HUGE moral hazards all over the economy?  They incentivise malinvestment, greed, speculation, risk taking, etc.  Those who played came out ahead for the most part.  But all good scams must come to an end...

Fri, 09/02/2011 - 16:10 | 1627679 Rastadamus
Rastadamus's picture

Burn Babylon Burn!!!!!!

Fri, 09/02/2011 - 16:11 | 1627681 CClarity
CClarity's picture

Worked at BofA back in the day of Schwab acquiition and SeaPac.  We called it "Bank on the Bleeder" mocking the tag line Bank on the Leader the PR folk employed.  Post Hugh McCall, Dave Coulter and other ego maniacs, the name is again apt as the death throes near.

Fri, 09/02/2011 - 16:13 | 1627703 CClarity
CClarity's picture

Meanwhile, Dick Bove again jawing on CNBC saying BAC has great capital ratios, plenty of cash on hand, and he is happy to own.  Silly goose.

Fri, 09/02/2011 - 16:21 | 1627738 Fascist Dictator
Fascist Dictator's picture

I remember Merril Lynch was/still is "We're bullish on suckers." Wish I could remember the others.....

Fri, 09/02/2011 - 16:11 | 1627685 azengrcat
azengrcat's picture

In my best Axl Rose voice:


Fri, 09/02/2011 - 16:55 | 1627889 Shell Game
Shell Game's picture

And I thought that was Roy Batty

Fri, 09/02/2011 - 16:11 | 1627689 dick cheneys ghost
dick cheneys ghost's picture

Better sue the rating agencies also.........Americans want justice for all........

Fri, 09/02/2011 - 16:36 | 1627802 Justaman
Justaman's picture

Not to say these agencies should be exonerated, but the general argument about them being the end all be all of analysis is a copout. 

Why do investors, analysts, managers rely on these conflicted entities?  I don't get it.  Anyone who strictly relies on these bad business models are just as at fault. 

Investors need to question everything and do their own homework. 


Fri, 09/02/2011 - 16:12 | 1627692 Long-John-Silver
Long-John-Silver's picture

Government and Bank elites throw a Donner Party

Fri, 09/02/2011 - 16:14 | 1627696 mt paul
mt paul's picture

the banks 

could not have sold 

all that MBS garbage


if there had been

no buyers .....


Due Diligence ..

is not

one of the strippers 

down the club ..

Fri, 09/02/2011 - 16:17 | 1627724 PhattyBuoy
PhattyBuoy's picture

I think her name is Dew Diligence...

Fri, 09/02/2011 - 20:13 | 1628571 mt paul
mt paul's picture


Fri, 09/02/2011 - 16:14 | 1627702 Justaman
Justaman's picture

Quite ridiculous when you think of it. They are going to pay the settlement with the toilet paper they borrowed at 0%. 

How is this punishment? 

Fri, 09/02/2011 - 16:16 | 1627715 gangland
gangland's picture


aaaaaand que dick bove...."I still stand by my recommendation of Bank of America....this suit is meritless, Bank of America did nothing wrong...this is fannie and freddie's fault, not the banks....Bank of America as a franchise is not broken"

CNBC 1:20PM Friday, Sept 2 2011

Fri, 09/02/2011 - 16:17 | 1627721 digalert
digalert's picture

Bove CNBS:

"Blame FHFA not poor BofA"

Fri, 09/02/2011 - 16:21 | 1627736 Greater Fool
Greater Fool's picture

It's true, you do feel sorry for them a little bit. Poor itty bank.

Fri, 09/02/2011 - 16:25 | 1627745 connda
connda's picture

Slap on the wrist. kiss on the cheek, bonuses for the execs, and a few mil. for Rick (BoA has your back) Perry. 

"Keep walking folks -- nothing to see here!"

Fri, 09/02/2011 - 16:26 | 1627760 Greater Fool
Greater Fool's picture

An excellent summary of Unka Warren's thinking about pouring some of his, you know, extra money into this little venture that would completely fubar the retail banking system in the US if it imploded.

Fri, 09/02/2011 - 16:38 | 1627821 Piranhanoia
Piranhanoia's picture

Just can't believe the money was his any longer. He would have known about all of this.  BS meter is going off.

Fri, 09/02/2011 - 16:25 | 1627756 Corn1945
Corn1945's picture

Nothingburger after nothingburger. The banks will lose the case but the taxpayer will pay the bill.


Fri, 09/02/2011 - 16:26 | 1627762 dwdollar
dwdollar's picture


Fri, 09/02/2011 - 16:26 | 1627758 marcusfenix
marcusfenix's picture

bank runs starting tuesday?

Fri, 09/02/2011 - 16:26 | 1627761 treemagnet
treemagnet's picture

Banker:   "But, but...what about my bonus?"

Fri, 09/02/2011 - 16:29 | 1627768 azengrcat
azengrcat's picture

How bout that fortress balance sheet Jamie?

Fri, 09/02/2011 - 16:30 | 1627770 jmc8888
jmc8888's picture

...and the credibility of ~47 bankster whoring state AG's was just flushed down the toilet. (not to mention their time)

In a sane country the opposition would rail against how Obama pushed hard for this settlement, but hey when the opposition is in league with you, it'll never happen.  Except for the idiots in the opposition who are the same, but somehow think they are different. (because they're fucking nuts, or so stupid they think they can fool the public [well maybe on the last one it might be true])




Fri, 09/02/2011 - 16:31 | 1627779 rodocostarica
rodocostarica's picture

burn baby burn. BAC puts.


They are crimanals to the first degree.

Fri, 09/02/2011 - 16:33 | 1627793 lizzy36
lizzy36's picture

Anyone know what the losses on the securities being sued over acutally are?

BAC/MER being sued on LOSSES on $31B of RMBS securities. What are the losses?

Mon, 09/05/2011 - 23:46 | 1627996 gangland
gangland's picture

maybe $6 Billion

Fri, 09/02/2011 - 16:33 | 1627794 Madcow
Madcow's picture

hoooraayy!!  oh, wait.  that's out of MY pocket.


your tax dollars hard at work ...

Fri, 09/02/2011 - 16:36 | 1627803 Subprime JD
Subprime JD's picture

And why are the futures flat? You would think that a $30 billion lawsuit would send futures through the floor

Fri, 09/02/2011 - 17:58 | 1628218 lolmao500
lolmao500's picture

Futures have a long time to go down. The markets open only on Tuesday. So people are waiting to see if really the government will man up and REALLY try to get that money.

Fri, 09/02/2011 - 19:11 | 1628415 Iriestx
Iriestx's picture

Don't the futures usually go up on bad news?  I've been in bizarro world so fucking long I don't know anying but up on bad news, up on good news, up on no news.

Fri, 09/02/2011 - 16:37 | 1627807 traditionalfunds
traditionalfunds's picture

What are we going to do around here when Bank of America is gone?

Fri, 09/02/2011 - 16:48 | 1627856 traditionalfunds
traditionalfunds's picture


Request for a jury trial vs Merrill



WHEREFORE Plaintiff prays for relief as follows:

316. An award in favor of Plaintiff against all Defendants, jointly and severally, for all

damages sustained as aresult of Defendants' wrongdoing, in an amount to be proven at trial, but


a. Rescission and recovery of the consideration paid for the GSE

Certificates, with interest thereon;

b. Each GSE's monetary losses, including any diminution in value ofthe

GSE Certificates, as well as lost principal and lost interest payments thereon;

c. Punitive damages;

d. Attorneys' fees and costs;

e. Prejudgment interest at the maximum legal rate; and

f. Such other and further relief as the Court may deem just and proper.


Fri, 09/02/2011 - 19:43 | 1628489 connda
connda's picture

Celebrate! :)

Fri, 09/02/2011 - 16:49 | 1627862 spartan117
spartan117's picture

This makes no sense.  Federal Gov bails the banks out in 2008.  In 2011, Fed Gov, sues the banks.  What a bunch of clowns.

Fri, 09/02/2011 - 18:37 | 1628326 Freddie
Freddie's picture

Cloward Piven to destroy the banking system.  Started with ACORN lawsuits and CRA to force banks to lend money to people who could not pay.  This is wealth distribution Obama/Mugabe style.  Ideally I would like to see the big banks and investment banks die.   Most small and medium sized banks are not scum. 

This is part of their plan.  Go into a Chase in any white community and you will see about 5% of the staff are caucasian.  I have been in a few even though I do not business with them.  This is the Zimbabwe/USARR of the banking system.

Fri, 09/02/2011 - 19:46 | 1628495 connda
connda's picture they can bail them out again in 2012.

Fri, 09/02/2011 - 16:59 | 1627906 Andrew Jackson ...
Andrew Jackson epitaph's picture

And SocGen :  losses on $1,3  billion

Fri, 09/02/2011 - 17:02 | 1627925 linrom
linrom's picture

Where is the Tanman? The freaking Guido is probably floating in Passaic River working on his orange tan laughing his ass off.

Fri, 09/02/2011 - 17:15 | 1627994 Use of Weapons
Use of Weapons's picture

I felt a great disturbance in the economy, as if millions of lawyers suddenly cried out in pleasure and were suddenly silenced. I fear something terrible has happened.


QE3 is via the legal profession. Nice touch - looking at the firm who got $100+ mil from the 9/11 settlement.

Sun, 09/04/2011 - 14:22 | 1631672 tip e. canoe
tip e. canoe's picture

makes perfect sense actually

Fri, 09/02/2011 - 17:46 | 1628148 pamriallc
pamriallc's picture

So it goes....

The "No American Left (without a house) Behind Program" was a great contributor to banks lending vs property of "dubios/relative value" and in order to deal with the volume, they largely computerized the process, and through Greenspan rates kept ratcheting lower, adding fuel to the fire. There are so many contributing factors here that its hard to quantify. CRA-programs whereby banks were in fact FORCED to lend to persons in their own community who otherwise called FOUL if denied credit and FNM/FRE effective GSE programs which (by Federal policy) encouraged loans to effectuate NINJA style programs. The idea that the SAME GOVERNMENT will then go back in blame the same institutions for somehting that they were responsible for creating (much of) due to a littany of policy mistakes and gratuitous and selfish grandstanding for political favor among constituents..... the idea that now the same government would come back and try to bankrupt the same institutions goes well beyond blasphemy.

We have long said that the DEBT of the banks will be fine but that the EQUITY will be of dubious investment quality due to the "whipping boy" routine which would follow such an enormous increase in bank reserves after the spreads that these institutions have been able to enjoy under current interest rate conditions. Simply put, the authorities would see the massive buildup of cash and then sue for it under the pretense that banks were ENTIRELY at fault for the mortgage mess, when in fact policy was more the problem. Banks are currently stacking up huge reserves as a result of being leveraged 12:1 and collecting three points of spread.... 30%+ annual book cash growth.... makes up for tons of bad debt..... and then there are the increased reserve requirements...... so the cash laying around is now extraordinarily significant. Expect this to be chewed up during the new process in which the same policymakers blame banks for human tendency to overextend themselves, and a government policy which effectuated more home ownership than any time in history, at which point a newbie couple out of college or even high school would have the opportunity to buy a house for $500,000.00 with basiclly zero down.

Suck it Up II

That's not evil bankers....that's a system which was primed from many years of policy preconditions resulting in a boom and the bust that had to follow. Expect BAC, C, WFC and JPM to muddle along and for the authorities to attempt to extract cash (the government is in fact desperately in need of it) in which case the populist threat swells with a littany of spurrious suits, then ebbs a while before going away entirely over the next several years.

At some level, if I were a BAC or a WFC Chairman, I would relish the thought of winning the majority of these suits. At some point, the whole "bankster" argument becomes ridiculous and the system has been purged "enough" and the rally cry from the sock-puppets (politicians) in the audience becomes a joke. Some people wiill not stop complaining until the whole system has collapsed. Since that's not going to happen, we must deal with the imerfections, and work with a system that while imperfect.....every passing day confirms that the USA still has the best one in for those people lucky enough to be among the PIIGS.

Buy the bank bonds, preferred stock....and for real cowboys, buy the convertible preferred equity. Common need not apply.

Solutions Delivered Daily:

Fri, 09/02/2011 - 17:56 | 1628208 lolmao500
lolmao500's picture

So BAC is being sued for 55 billion?

Fri, 09/02/2011 - 18:28 | 1628303 Alex2245
Alex2245's picture

I know this a little OFF TOPIC but this really really needs to get out! Maybe Tyler will even post or talk about this, please!

This is written by Sibel Edomonds by the WAY!!

"I will go as far as calling the penetration of the Ron Paul camp by Bruce Fein ‘the greatest threat to Paul’s camp to date,’ and will make a solid case for this characterization based on glaring and alarming facts; facts and concerns shared by several loyal Paul advisors today.

Who is the real Bruce Fein? Why there are so many different versions of Fein – one contradicting the other? How do his real actions and intimate associations stand in stark contrast to Ron Paul?"

Fri, 09/02/2011 - 18:56 | 1628377 Old Poor Richard
Old Poor Richard's picture

Damn, not sure the UN could come up with that much money if they were facing nuclear blackmail.  GS probably has it kicking around in the basement of an executive's mansion.

Fri, 09/02/2011 - 19:13 | 1628421 tony bonn
tony bonn's picture

i love the smell of lawsuit in the evening - i hope i can wake up to some more on tuesday....

Fri, 09/02/2011 - 19:13 | 1628422 Iriestx
Iriestx's picture

So let's assuming this goes to trial, or gets settled and Uncle Gorilla gets $200-400b from these banks.  Wouldn't that only fuel the Federal spending for what, 20-35 days?

Fri, 09/02/2011 - 21:26 | 1628631 sschu
sschu's picture

When they finished with the focus group of PO'd voters that pegged the angry needle, they decided:

Step 1 - sue them

Step 2 - discovery

Step 3 - publically vilify them

Step 4 - RICO

Step 5 - seize them

Step 6 - reset

If Bam etal is playing politics, then a post election settlement will be in order and this will all come to nothing just like the Microsoft suit. 

If someone (and I cannot decide who that is) is serious, and wants to clean house, then the question is who, because we know it is not the Bamster.  How far are they willing to go?  If it is serious, then they better have deep pockets, balls of steel and be ready for the fight to the death. 



Sat, 09/03/2011 - 07:09 | 1629211 slewie the pi-rat
slewie the pi-rat's picture

nobody wants to clean anything, but BAC, as in "clean up" 

my theory is that if the fix wasn't in, warren would not have made the deal, shortly after prez0 called him.  but, i have no proof.  then, shortly afterward, we get a motion to move to a "federal" jurisdiction, due to certain "aspects of the nature of the case".  a motion.  in a state court. which can be appealed all the way to the fuking supremes, just like the fla election case of 2000. really!

now this!  more lawsuits!  just more reasons to grant the motion to a "higher" venue for this "landmark" case.  trust me?

if you think buffett is gonna do a $5 Bil (!) hard fuking money deal with these shitheads and lose, how about a nice bridge for the missus? 

now, i'm probably wrong, again, but that's the most likely scenario according to my limited knowledge and understanding

tyler doesn't know one iota more here than elmer fuking fudd

question "authority"!

some day maybe you can honestly say, with me:  people have made freaking fortunes fading my calls!

Sat, 09/03/2011 - 08:47 | 1629277 SAME AS IT EVER WAS

The huge rebound in the ponzi markets these past two years has been nothing but a means of restocking the money supply-"green shoots"- of the pension and 401k accounts so the  banks being sued can collapse the markets again and pay the damages; with a few strategic, engineered, bank collapses (mergers) of course.

Sun, 09/04/2011 - 03:09 | 1631019 LucazBrewz
Mon, 09/05/2011 - 08:33 | 1633780 shacai
shacai's picture

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