Just to begin with: NEW YORK (AP) -- American International Group Inc. said Monday it sued Bank of America Corp. for more than $10 billion, saying the bank cheated it by selling residential mortgage-backed securities that were overvalued.
Bank of America denied the allegations, saying AIG "recklessly" chased investments with high returns, and was big and sophisticated enough to know the risks.
Banks have been hit by a series of suits over misrepresentations of mortgage-based securities.
While that is annoying, at some point people must have considered that BofA needed to raise capital and questioned the divvy on the preferred.
CNBC is abuzz this morning with Bank of America talk. While my preferred where getting blown up on investor fears of <this space left blank>, the smartest guys in the room where buying the preferred. Eventually I stopped buying the preferred because prices dropped so low that I started second-guessing myself wondering what on earth was going on, thinking as I did so, that maybe I had missed something obvious that the market knew that I did not.
For myself, I’m more interested in hearing Jamie Dimon talk than the FOMC.