BofA Wins Dismissal of Suit Seeking Mortgage Buybacks

[Xipe Totec]

Source: Bloomberg

Oct. 13 (Bloomberg) -- Bank of America Corp. won dismissal of a lawsuit that sought to force the bank’s Countrywide unit to buy back the full unpaid balance of mortgages it had sold to investor trusts.

New York state Supreme Court Justice Barbara Kapnick ruled that the plaintiffs failed to meet the preconditions required under the trusts’ pooling and service agreements for bringing a suit, including the support of 25 percent of certificate holders.

Greenwich Financial Services Distressed Mortgage Fund 3 LLC, run by a Greenwich, Connecticut-based securities firm, sued Countrywide Financial Corp. in 2008, claiming mortgage bond investors would be hurt by its agreement with state attorneys general to reduce payments by $8.4 billion on 400,000 mortgages. The lawsuit proposed a class action on behalf of 374 trusts.

Read more: http://www.businessweek.com/news/2010-10-13/bofa-wins-dismissal-of-suit-seeking-mortgage-buybacks.html

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So the banks are already talking settlement with the AGs?

Over what?

[w4rma]

1. There are no good guys in this court case. (nt)

[Ikonoklast]

2. All of them were greeedy shits, buying and selling these instruments

as long as all looked good and they all made a ton of dough doing so.

Now, everything's gone tits up, and they are paying for that greed.

Caveat Emptor.

[CoffeeCat]

4. Pardon me if this is an ignorant statement...

...I'm no elite financier, but I am really wondering how any of
these big banks are still standing.

It feels like a giant Ponzi scheme, and Ponzi schemes have a
point at which the facade can no longer be perpetuated.

Are we close to a major breaking point? It sure feels like it.

Many of the major financial players seemed to have run series
after series of schemes, bubbles and cons. They all made a
ton of money on paper--for themselves, but it sure feels as
though the bottom layers are going to be left with the hot
air.

I seriously don't know what is holding up our financial
system, with all of the colossal screw ups and crimes.

Especially with the economy the way it is.

[w4rma]

5. Don't bail them out. The system will be fine without them. It was a huge mistake to bail them out.nt

[Xipe Totec]

3. +1 nt