New York Attorney General Investigates Bank of America

Posted on June 13, 2011

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The Huffington Post reports that “New York Attorney General Eric Schneiderman has targeted Bank of America, the biggest U.S. bank by assets, in a new probe that questions the validity of potentially thousands of mortgage securities and their associated foreclosures, two people familiar with the matter said.”

Let’s break this news down a bit to better understand the implications.

The New York Attorney General, Mr. Schneiderman, is targeting the bonds made out of the mortgages. Those mortgage-backed bonds were sold like other bonds. Mr. Schneiderman is now saying that New York’s law on selling them that way may have been violated.

This all goes back to my earlier prediction that Bank of America is not too big to fail, after all.

See full article here.

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Posted in: Attorney, Foreclosure