Bank of America (BAC), JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WF) are in the middle of fighting off lawsuits related to mortgage-backed securities. But one analyst suggests that the worst case MBS scenario for banks is still manageable.
Seeking Alpha has more on this claim:
"Initial estimates of mortgage-related losses and litigation settlement costs were too low … at this point, more than 5 years since the mortgage-driven parts of the crisis began to explode … we believe the banks' estimates … are likely to be more accurate than externally-derived estimates,” saidDrexel Hamilton's David Hilder.
