The Faber Report
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- Economist Nouriel Roubini's Firm Is For Sale
- Outcome of Euro Zone Crisis Still Impossible to Predict
- Energy Sector Has Undergone 'Tectonic Change': CEO
- Netflix's Self-Inflicted Wound
- Why BofA Is Exiting HCA Stake
- Yahoo Hires UBS, Allen to Navigate Tough Times
- Bartz Ouster From Yahoo Comes with a Bad Quarter
- Euphoria Over Buffett's $5 Billion BofA Investment Subsides
- Has Hewlett-Packard Made Itself a Takeover Target?
FABER REPORT VIDEO
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21 May 2012
Coty Withdraws Avon Offer 15 May 2012
Faber Report: Elliot Notifies BMC It Intends to Nominate 5 Board Members 14 May 2012
Faber Report: News Corp Boosts Buybacks 10 May 2012
Faber Report: Hostiles Gone Bad 07 May 2012
Faber Report: Viacom & Cablevision 03 May 2012
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COMMUNITY
RECENT POSTS: THE STRATEGY SESSION
Bank Stocks Crushed as New Mortgage Issues Emerge
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CNBC Anchor and Reporter
Banks stocks are getting crushed again today as investors wake up to a fear we first told you about yesterday: That significant liabilities are possible for the big banks who securitized mortgages due to misrepresentations about the standards attested to for the mortgages in the pool.
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Suddenly, and perhaps because of the focus on the separate issue of problems in foreclosing on mortgages, investors have awakened to this emerging issue and are trying to understand the true liability for banks, such as Bank of America [BAC
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That is difficult to do. There were some $2.5 trillion worth of private—not Fannie Mae [FNM
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]—mortgage securitizations done from 2005-2007 (including prime mortgages) and many would say the value of those securities has fallen by at least 30 percent since they were issued.
That does not mean the banks are on the hook for anything near that amount or will not ultimately prevail in the court cases that are ongoing and the ones that are yet to come.
On The Strategy Session today, we will have the lead attorney on behalf of the owners of many of those securitizations, including the Federal Home Loan Bank (FHLB), who is suing the banks.
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