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Banks able to withstand worst MBS scenario

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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.

Source: Seeking Alpha

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