Of Special Interest
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
1st July 2011
BoA $8.5bn mortgage settlement offer NOT a done deal
The widely reported Bank of America settlement offer made to buyers of Retail Mortgage backed Securities that are claimed not to have been as described in the prospectus is not a done deal and could be rejected. The securities were mainly issued by Countrywide Financial, acquired by Bank of America in mid 2008.
The deal is offering just 2 cents in the dollar, a level which outrages some. It does represent over three quarters of what the Trustee calculated as justified and should the bondholders continue to fight any settlement income is likely to be significantly delayed and is by no means certain at all. Fighting on would also significantly increase the legal costs involved.
Bank of New York Mellon, the debt's trustee believes the deal is acceptable and will be recommending it to the New York court. Allstate are one of the larger bondholders involved and are still talking tough about "all rights and remedies", however have not outright rejected the proposal.