Tuesday, August 9, 2011

Dont Bank On This One...

My corporate people love it when I talk like this...(lol) Soo it appears things have gotten worse for Bank of America. Confirmed reports has it that American International Group(AIG) is suing the bank for more than $10 billion saying they cheated them by selling residential  mortgage-backed securities that were overvalued.  The lawsuit couldn't come at a worse time for the bank, their stock just dipped 20% falling a $1.66 to $6.51 a share, giving a similar feeling to shareholders as to what they felt in March 2009.  AIG claims Bank of America misled them in deal along with mortgage giants Countrywide and Merrill Lynch to purchase $28 billion in securities backed by home mortgages from 2005 to 2007 when the housing boom had reached his height..AIG stated that more than 40% of the securities were false. Fraudulent, Fabricated lol..Lets remember Bank of America just agreed to pay 8.5 billion in June to a group a investors for selling them poor-quality mortgage securities.. Just giving some information for my investors..this negative news just may hinder financial progress for the bank.

1 comment:

  1. Yea i peeped this..whatever happened with the whole mortgage industry deal seemed to have ripple effects..smh