From the FINANCIAL TIMES:
Bank of America has set aside $14bn to meet investors’ claims that loans packaged in mortgage-backed securities before the financial crisis failed to meet promised underwriting standards.
The provisions will wipe out BofA’s profits during the second quarter and underline the high price the bank is paying to move beyond the crisis and its disastrous 2009 acquisition of Countrywide Financial…
Countrywide, a home lender, has accounted for more than $25bn in losses at BofA. In settling a meaningful slice of its potential investor claims, BofA also brings clarity to one of the more difficult issues facing the bank and Brian Moynihan, its chief executive…
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