The meltdown in the financial markets obscured an important development on the mortgage front, namely, that New York state attorney general Eric Schneiderman filed a motion to intervene in the proposed $8.5 billion settlement between Bank of America and the Bank of New York acting as trustee of 530 Countrywide residential mortgage securitizations.
We said when the deal was announced that it was not a done deal and it stank to high heaven, so we are glad to see confirmation of our dim view. In keeping, the motion charges Bank of New York with “fraudulent and deceptive conduct”. As we will see, the allegations that Schneiderman has made against Bank of New York opens up a whole new front of mortgage securitization liability, that of the trustees failing to live up to their contractual duties and worse, making ongoing certifications that they had. This is an area we’ve discussed at some length before and have been surprised hasn’t been taken up until now.
This is all for show, don't get your hopes up. Nobody gets to be attorney general in NY unless he passes Wall Street's scratch and sniff test.
Remember this:
THEY OWN YOU!
http://www.nakedcapitalism.com/2011/08/new-york-attorney-general-schneiderman-drops-bomb-on-bank-of-america-settlement-and-bank-of-new-york.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+NakedCapitalism+%28naked+capitalism%29&utm_content=Yahoo!+Mail
