Banks able to withstand worst MBS scenario
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.