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New York Fed Suing Bank of America...

Written By Brian Hicks

Posted October 19, 2010

And the banks wonder why they’re not trusted…

The banks are worried as hell that it is now proven these banks gave mortgages with fraudulent documentation AND then illegally went on to sell these “securities” as legal tender.  Few banks will survive. This fraud is only now unraveling. It’s not about foreclosures and the impact on the humans behind the house, it’s behind the investors caught in the banks scam.

Utter banking stupidity… again. 

And after we bailed them out over and over.  How can these banks be so stupid?

Here’s what’s screwed up the most by this garbage.  One of the companies suing Bank of America is Blackrock… a company that’s 34% owned by Bank of America.

From CNBC:

“Bloomberg reported earlier Tuesday that the New York Fed had joined with the Pacific Investment Management Company, better known as Pimco, and investment management firm BlackRock in an attempt to force BofA to buy back $47 billion in mortgage bonds.

Kathy Patrick, lead attorney for the consortium, confirmed in a statement Tuesday that the group holds more than 25 percent of the voting rights in more than $47 billion worth of Bank of America securities.”

Here’s more…