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BofA (BAC) will buy back $330M of home loans from Freddie Mac (FMCC.OB) after flaws were found...

BofA (BAC) will buy back $330M of home loans from Freddie Mac (FMCC.OB) after flaws were found in how the loans were created. Though a relatively small re-purchase, the bank's overall costs tied to defective home loans have totaled more than $42B so far.
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Comments (8)
  • MexCom
    , contributor
    Comments (3054) | Send Message
     
    Costs? To buyback performing loans? One man's cost is another man's asset. The total "costs" are not cash flows out of the bank. The bank has set aside Billions of dollars and most has yet to be claimed. IMHO, much of it will never be claimed.

     

    The bank is saving billions of dollars in not having to pay taxes on their profits from setting aside funds for these contingencies. Some day the piper is going to have to be paid and the cash will return to the asset side of the balance sheet and the dividends paid to stockholders.

     

    Cash is not sitting idle. It is probably being loaned out or invested in Treasury securities. The assets acquired are not sitting idle - they are increasing the top line growth for the company.
    23 May 2012, 06:45 AM Reply Like
  • acesfull
    , contributor
    Comments (352) | Send Message
     
    You know, when you sit back and reflect on what happened to us around 2007 or so, and you see all the wealth that was literally swindled out of 401-K's, house values, stocks and savings of the average family, you begin to wonder how any of us survived. We should all be in the poor house, except for the elite financial players, politicians, and established controllers who managed to almost collapse the country. And then I think in amazement that five years later, nobody even went to jail. Kind of depressing.
    23 May 2012, 07:46 AM Reply Like
  • sahaam
    , contributor
    Comments (3) | Send Message
     
    I am amazed that you are amazed that nobody has gone to jail. Think about who most of these people are and you'll understand.
    23 May 2012, 08:25 AM Reply Like
  • Mrnomad
    , contributor
    Comments (358) | Send Message
     
    Thank Heaven for Bernanke. Given the mess left by Angelo and George, I'm amazed the US has done this well. You can call it philosophical differences, but it's nothing more than special interests with an incredibly effective propaganda machine working against the middle class.

     

    Let the bashing begin.
    23 May 2012, 12:41 PM Reply Like
  • fleming50driver
    , contributor
    Comment (1) | Send Message
     
    And what do you think might happen to Corzine??
    23 May 2012, 09:01 AM Reply Like
  • losbronces
    , contributor
    Comments (706) | Send Message
     
    It should be obvious by now that nothing will happen to him.

     

    It makes a joke of S-OX, so why bother with incurring compliance costs? Just use the money to make political contributions instead.
    23 May 2012, 09:14 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8690) | Send Message
     
    Great news for Freddie.

     

    Freddie is highly profitable and is printing money but that dividend payment obscures this for the market.
    23 May 2012, 12:25 PM Reply Like
  • herschfields
    , contributor
    Comments (101) | Send Message
     
    A must DVD is one put out by Sony which is "Inside Job". This seems to be very factual and has helped a lot into answering questions as to exactly how things came about in getting us to where we are today and, to me, asking the question, "Is this still going on" (JPM)?
    23 May 2012, 03:02 PM Reply Like
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