By way of quick summary, Bank of America entered into what is widely referred to as an $8.5 billion settlement. That would give it a broad waiver from suits by investors in the trusts that are covered by this pact, which represent virtually all of the Countrywide securitizations. The release goes well beyond the so-called representation and warranty liability, which resulted from the fact that Countrywide promised to put loans that met certain quality standards into their deals but instead put in quite a few dodgy loans. It also includes chain of title issues, which is a huge gimmie for Bank of America. Not only is the $8.5 billion amount arguably way too low just for the rep and warranty issue (AIG filed a $10 billion suit for bond issues representing a mere 6.6% of the total), but it is a screaming bargain by virtue of covering the potentially even bigger chain of title sinkhole.
http://www.nakedcapitalism.com/2011/08/quelle-surprise-new-york-fed-director-shills-for-bank-of-new-york-argues-against-rule-of-law.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+NakedCapitalism+%28naked+capitalism%29&utm_content=Yahoo!+Mail
