Seeking Alpha

Merrill must face suit over $1B+ in mortgages

  • At issue are 6K mortgages purchased by Merrill Lynch (BAC) in 2006 with an original principal balance of more than $1.1B. Merrill then turned the loans into MBS and sold them to investors.
  • Two trustees sued Merrill in late 2012, seeking to force the company to buy back the junky loans, and an appeals court today upheld a lower-court decision ruling Merrill must face the suit.
Comments (18)
  • rocback
    , contributor
    Comments (978) | Send Message
     
    This just upheld lower court ruling. It still has to go to the state Supreme Ct.
    17 Jun, 01:32 PM Reply Like
  • wyostocks
    , contributor
    Comments (7653) | Send Message
     
    Lets hope justice prevails. It is long overdue. Were these MBS part of the fund which blew up?
    17 Jun, 01:33 PM Reply Like
  • drgrier
    , contributor
    Comments (110) | Send Message
     
    Read the SA article regards "Statute of Repose". The Limitation for Civil Suits in this matter was Mid 2011 and "cannot be extended". Seems that this suit is "dead in the water". But who knows.....
    17 Jun, 01:43 PM Reply Like
  • Fanebrb
    , contributor
    Comments (490) | Send Message
     
    There should be jail time for those guilty of creating this mess.
    17 Jun, 02:07 PM Reply Like
  • 1Bill One
    , contributor
    Comments (2) | Send Message
     
    "those guilty of creating this mess"....do you mean Clinton, Dodd, Frank, Cuomo and the regulators involved with the social experiment? or do you mean those nasty, pesty predator bankers?
    17 Jun, 02:38 PM Reply Like
  • Wifeswaption
    , contributor
    Comments (24) | Send Message
     
    Hilarious. Yeah name one loan that went bad that was made while Clinton was pres. or how Dodd and Frank could create a mess when they were in the minority of their respective legislative bodies until 2007 I bet you blame our current potus for tarp too.
    18 Jun, 01:07 AM Reply Like
  • funfun
    , contributor
    Comments (2085) | Send Message
     
    It is not hyperbole or at all inaccurate to conclude in the 21st century the crooks and criminals running this beleaguered bank have fraudulently peddled $1 trillion in junk paper! And simultaneously they heaped huge personal fortunes on to their plates, the fruits of the fraud! BAC shareholders will be paying off the astronomical tab for years to come! …funfun..
    17 Jun, 02:17 PM Reply Like
  • d7mead
    , contributor
    Comments (22) | Send Message
     
    The banks sold junk investments as investment grade and are now being fined billions every week it seems. Which may be justifiable. But it was the gubment that wanted every American to achieve the american dream. It was the blind rating agencies that awarded these MBS's as AAA. It was the small and regional banks that made many of the bs loans in the first place.

     

    We all know that many parties were involved in created this mess but it seems that only the big banks are paying the price.
    17 Jun, 02:38 PM Reply Like
  • Scoreboard
    , contributor
    Comments (118) | Send Message
     
    -Average loans and leases for BofA keep going up approximately 11% with the bank posting $271 billion in 2013 vs. $244 billion in 2012.
    -Deposits are up nearly 16% - growing from $221 billion in 2012 to $256 billion in 2013.
    -BofA is still the largest retail deposit market share in the U.S. with approximately 49 million consumer and small business relationships. It's No. 3 in U.S. credit cards. It's No. 1 in online banking functionality with over 30 million online banking customers
    -Vastly improving net income and EPS
    -Net income was up nearly threefold year-over-year with the bank posting $11.4 billion in 2013 vs. $4.2 billion in 2012. Furthermore, diluted EPS was up significantly year-over-year at 0.90 for 2013 vs. 0.25 in 2012.

     

    Have there been problems... absolutely. And there is a lot of blame to be placed on a lot of people and institutions. But we hear the same criticisms week after week. No matter how these criticisms are disguised... they appear to be agenda driven critiques masked in fancy words and derogatory language. Frankly, these types of attacks add little or nothing to the understanding of the economic dynamics at work here. Reader beware! Agenda driven comments are rarely helpful in determining the right path to take in investment strategy. These articles are very helpful. Read them. Discuss them. Agenda driven or helpful advice? You decide.

     

    Merely the opinion of one individual retail investor…
    17 Jun, 03:13 PM Reply Like
  • funfun
    , contributor
    Comments (2085) | Send Message
     
    Readers beware indeed! When you see agenda-driven comments to protect and shield Bank of America Management from any criticism or dissent at all costs, and by all means including systematic smearing and heckling of Seeking Alpha Contributors and commentators, you know something is very rotten within. What is the next huge fraud to unfold? The next multi-$billion "accounting mistake"? What you see is PR damage control on an extensive and intensive scale. Red Flag for investors.

     

    ...funfun..
    17 Jun, 03:40 PM Reply Like
  • wyostocks
    , contributor
    Comments (7653) | Send Message
     
    funfun

     

    Readers of this, and every other site, should ALWAYS beware. As I've written in the past, anyone who loses money because of something they read on the web has no body but themselves to blame.
    17 Jun, 03:43 PM Reply Like
  • Scoreboard
    , contributor
    Comments (118) | Send Message
     
    Well put wystocks. I believe they do have "no body but themselves to blame." Then again... they can always blame the banks. Also I agree with another prior post stating readers should beware of those who conduct "systematic smearing and heckling." I think it does indicate there is something "rotten within." I’ve actually read posters use words like “crooks,” “criminals,” “integrity-depleted,” “ethically sick,” the list goes on. Such systematic smearing and heckling should not be tolerated. More importantly it does not properly address the critical issues confronting investors who contemplate making investments in various companies.

     

    More on point, I find it interesting that the trusts said Merrill is obligated to repurchase loans in which the representations and warranties were breached by ResMAE. This type of litigation does not go away quietly… but it does go away.

     

    Fellow investors listen to the words that are used while indicating an investment position. Agenda or not? You decide.

     

    Merely the opinion of one individual retail investor…
    17 Jun, 05:32 PM Reply Like
  • funfun
    , contributor
    Comments (2085) | Send Message
     
    Folks, we will continue to call those Bank executives and Managers who presided over flagrant violations of federal law during the 21st century and, for instance, foreclosed on the homes of women and men serving in the military overseas as "crooks" and "integrity-depleted". You be the judge. We believe fervently the description fits, no matter how much cynical PR damage control is larded onto internet investor sites by those who are frantic to protect Bank of America Management from any blame or responsibility.

     

    And friends, like or not, corruption goes to the very heart of the issues mounting against this intractably troubled Bank. Why do you think the "leaders" of the Bank have been compelled to shell out $60 billion in litigation charges and fines and settlements to date? With likely $17 billion more on the way? Pretend this Bank has been managed by honest and competent and decent men and women in the 21st century, whose overriding focus has been BAC shareholders and customers and investors...not the undersigned investor.

     

    ...funfun..
    17 Jun, 06:26 PM Reply Like
  • funfun
    , contributor
    Comments (2085) | Send Message
     
    Remarkably, folks, we have just been accused of "heckling" and "smearing" the Management of Bank of America because we dare as an investor to question the quality and performance of the leadership of this historically fraud-infested, publicly owned and traded bank in the 21st century. What a leap of illogic.

     

    Moreover haven't these hyper-sensitive defenders of Bank Management read or heard about freedom of expression in America granted to all of us American citizens?

     

    ...funfun..
    17 Jun, 06:33 PM Reply Like
  • Scoreboard
    , contributor
    Comments (118) | Send Message
     
    Loans and leases for Bank of America keep going up. Deposits are up. And the Bank is still the largest retail deposit marker share in the United States. Simply look at some of the fundamentals. I suppose in 3 or 4 years we'll see who is correct in their analysis. Scoreboard!

     

    Now, individuals can use this forum to conduct a campaign of name-calling if they like. It seems inappropriate. Usually it is these same people who complain if "abusive and personal" remarks are directed toward THEM. Perhaps we can stick with fundamental economic and financial analysis.

     

    Freedom of expression goes BOTH ways... yet I choose not to use this forum to to call people or institutions derogatory names. Nor do I choose to call those who disagree with me "hyper-sensitive."
    Agenda or Well Thought Out Economic Analysis. You decide.

     

    Merely the opinion of one individual retail investor…
    17 Jun, 09:06 PM Reply Like
  • funfun
    , contributor
    Comments (2085) | Send Message
     
    Fellow Investors, what the proponents and protectors of Bank of America Management want you to believe is the quality and character of the leadership doesn't matter at all, had no impact on the failure and floundering of this bank in the 21st century. Only "economic and financial analysis" matters, they contend, the raw data of the balance sheet, assets and liabilities.

     

    From our perspective, the quality and performance of a bank's leadership team is the most salient factor in the success of a bank and derivatively its stock performance. The competence and integrity of the leadership makes the difference between a superior-managed bank and an inferior-managed bank. We'll take the former any day as a general rule for long term equity investment.

     

    …funfun..
    18 Jun, 05:20 AM Reply Like
  • Wifeswaption
    , contributor
    Comments (24) | Send Message
     
    More loans means nothing if the loans are of low quality. I guess people can decide whether they trust an organization that has this history to change its ways suddenly. I subscribe to the idea that market conditions change, corporate culture does not.
    18 Jun, 01:23 AM Reply Like
  • Scoreboard
    , contributor
    Comments (118) | Send Message
     
    If someone wants to see what a negative comment WITH SUBSTANCE looks like... refer to Wifeswaption's above comment. Gee, I guess you DON'T have to resort to derogatory aspersions and name-calling to make your point. And, by the way, I tend to agree with Wifeswaption's comments. If the loans are of low quality they don't necessarily reflect an improved economic status. Yet, when other fundamentals also seem very solid the loans is just another indicia of the overall direction of the company. I believe that market conditions change and corporate culture changes very slowly. I think corporations, by nature, are greedy. I think that BAC's organization, and it's history, will end up rendering good results for it's investors in the near future. (1-3 years)
    18 Jun, 05:08 PM Reply Like
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