Mortgage

Bank of America still battles Countrywide settlement

Bank of America has faced several repercussions after acquiring Countrywide, including the failed bank’s liabilities.

In a blog by Michael Demaray on Seeking Alpha, Demaray poses the question: Did Bank of America effectively limit its Countrywide liabilities?

Demaray says some believe Bank of America (BAC) is engaging in risky business by not settling with MBIA, and as a result, Bank of America could jeopardize another settlement with law firm Gibbs & Bruns over mortgage securities. 

However, Demaray goes on to suggest what would happen if the settlement does not go through. He worries that without the right settlement deals in place, BofA may not have the reserves in place to deal with the potential payout. However, this is all speculative.

Michael Demaray, writing for Seeking Alpha, has more in a blog posting.

 

 

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