Posted on Monday, March 8, 2010
So far Babk of America has been asked to buyer back $1.5 billion compared to $448 million is 2008. JP Morgan $1.7 billion compared to 2008 $1.1 million. And Wells Fargo $1.3 billion compared to 2008 $426 million. Clearly buy backs will have a big impact this year on bank health.
The total buy backs last year of $20 billion will probably be exceeded this year. orignators have 3 ro 2 years to act on FNMA Freddie byu bakc requests so expect this hiccup to last a while.
Perhaps more significant, what does this say about the level of fraud during the bubble - buy bakcs are based on non-compliance and breech of reps and warrnaties regardign the loans, often releated to the absence of fraud and inaccuracies.