The next recession could hit a lot sooner than many think
A few weeks after every money losing firm in the US and the kitchen sink disclosed it would sue Bank of America in an accelerating attempt to salvage something through litigation, the worst case scenario for Brian Moynhian just got real.
As of minutes ago, Norway's Government Pension Fundwhich is another name for its Sovereign Wealth Fund, has just announced it is suing Bank of America for mortgage fraud. Not only that but it is also going after Countrywide, obviously, but far more importantly, is also suing KPGM, the auditor on the Countrywide transaction, and, drumroll, ole' Agent Orange himself.
If US bank analysts were busy quantifying the damages from every bank in the US suing BofA, just wait until the calculation is expanded to included every firm that bought mortgages from Bank of America Billions are at the game.
The Fund and 14 other large institutional investors meetings the parties to a court in California. They claim that Countrywide - formerly the largest U. The company was one of the largest lending founders of so-called subprime loans, which was a major cause of financial crisis.
Because of the misrepresentation of the company and senior management, bought the oil fund and other investors in Countrywide shares at artificially high prices from March to Marchaccording to the fund. Angelo Mozilo and two other former directors sued as well.
They should have enriched himself personally by selling shares of "several hundred million dollars" based on information that was not available in the market. Just over a year later was the stock down by about 90 percent, which caused investors billions of dollars in losses, "the oil fund's press spokesperson Bunny Nooryani in an email.
She would not identify the values??
The Fund reported last year, the requirements in 50 different cases pending before courts, but rarely direct legal action themselves. And just like the US lawsuit spigot opened ever so slowly at first, it is now gushing, and is absolutely certain that every company ahem insolvent German banks that ever bought a mortgage from Countrywide, Merrill and Bank of America will serve the local branch of the bank with a summons over the next month.
All those wondering just what rainy day BofA and all other banks had been conserving their ever growing cash stash for, just got their answer. And the funniest, or saddest depending on one's perspective, thing is:Bank of America, which regularly makes the top ten of the most despised institutions in the country, has been a major player in numerous ongoing lawsuits alleging that the bank, and others, committed a variety of fraudulent acts and practices dating back to the housing meltdown of The federal reserve is the enemy of America.
"Whoever controls the volume of money in any country is absolute master of all industry and commerce."(Paul Warburg, drafter of the Federal Reserve Act).
Sep 06, · Bank of America, the biggest U.S. lender by assets, has been hit by a string of lawsuits concerning its legacy mortgage business.
Each lawsuit has been fueling strong pessimism among investors about the quality of the bank’s assets, and its spiraling legal costs.
The World Bank Group works in every major area of development. We provide a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face.
The Bank of America Corporation (abbreviated as BofA) is an American multinational investment bank and financial services company based in Charlotte, North Carolina with central hubs in New York City, London, Hong Kong, and timberdesignmag.com of America was formed through NationsBank's acquisition of BankAmerica in It is the second largest banking institution in the United States, after JP.
The Justice Department’s Inspector General, Michael Horowitz, will soon release a much-anticipated assessment of Democratic and Republican charges that officials at the FBI interfered in the.