Bank of America, along with JPMorgan (NYSE: JPM ) and Citigroup (NYSE: C ) , has been named in a suit filed by Freddie Mac alleging that the banks were involved in the rigging of the widely used LIBOR rate. The case states that the banks colluded in order to artificially suppress the interest rate from Aug. 2007 to May 2010 in order to not only inflate their profits but to hide their growing financial problems. It is estimated that both Freddie Mac and Fannie Mae have lost as much as $3 billion to $1 trillion in losses from mortgage securities and other investments tied to LIBOR
Isn’t it hypocritical that the US Government under the Bush Administration was directly responsible for creating and fostering an ideal environment for rampant greed and manipulation through their insipient financial deregulation policy to serve their ideological and political purposes at that time?
Now the same Fed has the audacity to go after banks through its Fannie and Freddy and onslaught of lawsuits by its Attorney General(s) from different branches of government. I think the Federal Government should be sued by the banks. After all, the financial regulation at the time allowed Wall Street and the banks to financial engineer products that have created this mess which makes Federal Government culpable as well.
You need to stay awake all weekend worrying about something other than the EU (committed to currency debasing and funding the weak sisters out of concern for their own economies and the atrocities of WW2 still haunting them.
As for the FRE lawsuit, your trillion bs is ridiculous. Try more like a few billion more eating off the hog of all the big banks incl GS and MS. These lawsuits are in the share prices you see for all these companies. When all such bs lawsuits are resolved, BAC will be well above $30.
Perhaps you missed the US Goct and Fed authorizing the share and preferred repurchases? The big hits are over dude -- being short the banks is a gumptard's idea these days. Time to get VERY LONG!
Freddie and Fannie were the REAL CAUSE of the mortgage meltdown. The Obama inspired lawsuit is totally political in that another mid-term election is coming next year.
DO your DD PRIOR to attempting a Post here.
Sentiment: Strong Buy
are dumb that is not 3 trillion is way less and if they lost the will have pay 100 milliom each or so that is not much they are like 4 banks if it was 3 trillion bank will drop to 2008 lows 3 trillion is huge
The "Chicken Littles" have been crawling on these financial websites since what, 2008? Why does anybody listen to them anymore? BAC isn't going anywhere. Lawsuits come, attorneys try a shakedown, and then it's settled for pennies on the dollar. Lather, rise, repeat.