$106 Billion May Be the Cost of Mortgage Buybacks
According to a November 29, 2010 Bloomberg article, U.S. banks might be facing $54 billion to $106 billion in costs as an increased number of investors demand that issuers of mortgage backed securities (MBS) repurchase faulty loans. Paul Miller with FBR Capital Markets had projected losses of $44 billion to $91 billion in September. He said the new numbers reflected recent disclosures about possible losses, which likely involves the recent news about the Coutrywide mortgage mess that came out in deposition testimony in a New Jersey foreclosure case.
The major players involved in this include JP Morgan, Citigroup, Bank of America and Wells Fargo, who will likely account for 40% of the industry losses.
If you have suffered losses from investing in mortgage backed securities (MBS), contact our securities law firm for a confidential, no obligation consultation at 1-800-259-9010.