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A trust sues Bank of America's (BAC) Merrill Lynch for ~$310M in connection with the...

A trust sues Bank of America's (BAC) Merrill Lynch for ~$310M in connection with the securitization of nearly 6,000 mortgages in 2007. The suit, which alleges breach of representations and warranties related to the securitizations, was filed Friday in New York State Supreme Court. 
Comments (12)
  • stargazers
    , contributor
    Comments (21) | Send Message
     
    Well B of A sure has a lot of crap on their plate. It seems everybody around is suing them. Their lawyers will have job security forever and can pass the job on to their grandsons. Gads, what a freaken mess they have created. R they incompetent or just unlucky.
    30 Mar 2013, 10:54 AM Reply Like
  • bgold1955
    , contributor
    Comments (1939) | Send Message
     
    Country Wide acquisition was wildly incompetent. Sold BAC several years ago at a slight loss as I couldn't take the weekly lawsuits. Would have doubled my money if I held but at least no drama.
    30 Mar 2013, 11:07 AM Reply Like
  • benitus
    , contributor
    Comments (1898) | Send Message
     
    They'll settle if the case has merit, just to get rid of them and keep the dirt from falling out. If there's no merit, BAC will fight tooth and nail, as the case will easily be thrown out of court. Brian M. is doing a great job cleaning the mess of the past, so I'll expect BAC to appreciate significantly once the shorts are convinced that the downside is limited.
    30 Mar 2013, 11:10 AM Reply Like
  • EGalindo
    , contributor
    Comments (90) | Send Message
     
    B of A had to have known how bad Countrywide was when they purchased it. I will never fully understand that, but what I do understand is that no business built on a foundation of fraud should be able to continue in that business model. It can only be destructive in the long run.

     

    Another lawsuit, added to the plethora of lawsuits already on the books. Stargazers is correct, the attorneys will be able to pass their jobs onto their grandsons. Meanwhile the economic cataclysm of our country continues.

     

    So we realize that there will be a price to pay for this?

     

    bgold 1985 - must not have been that many years ago you bought and sold, because 7 years ago BAC was up over $40 per share. It is now hovering around $12.
    30 Mar 2013, 11:19 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8145) | Send Message
     
    I'd love to be a yacht dealer to lawyers that are involved with suits against BAC.
    30 Mar 2013, 01:54 PM Reply Like
  • bill d
    , contributor
    Comments (1879) | Send Message
     
    This is terrible - almost like kicking a poor armed robber while he's down.
    30 Mar 2013, 02:14 PM Reply Like
  • jorich
    , contributor
    Comments (3) | Send Message
     
    Prior to closing the deal to acquire Countrywide, I expect that BAC's Board of Directors required the firm's M&A Department, with the assistance of the firm's Audit Department to conduct a comprehensive Due Diligence Review with overview by its external auditors. Considering all the issues that have surfaced directly related to this acquisition, I would expect that the head of M&A and General Auditor, as well as other responsible parties were terminated for incompetence.
    30 Mar 2013, 02:28 PM Reply Like
  • Nikhil Kumar
    , contributor
    Comments (7) | Send Message
     
    And the fun never stops! It's just another buying opportunity for picking up some BAC stock.
    30 Mar 2013, 02:33 PM Reply Like
  • only11toes
    , contributor
    Comments (23) | Send Message
     
    a suit from 2007 ? i wonder how much business this trust did with BAC over the years, and how much profit was made from these other transactions? they expect all their transactions to be profitable? why did it take them 6 years to realize damages.
    what about their own DD?
    30 Mar 2013, 02:41 PM Reply Like
  • dme306
    , contributor
    Comments (30) | Send Message
     
    Does the "Statute of Limitations" ever apply in these cases? I'm sure the case was reviewed by all of the lawyers representing the plaintiffs, and that question was answered but sooner or later this will have to end when the clock stops.
    1 Apr 2013, 05:25 AM Reply Like
  • benitus
    , contributor
    Comments (1898) | Send Message
     
    I can't understand why some among us "smart" people are still beating up on BAC for its Countrywide debacle, when those responsible aren't around anymore and BAC has largely dealt with the fallout from their mistake. If there's wrong-doing, I'd say let the law take its course, as I'm sure the Feds wouldn't go to bed until the perpertators are taken down because that's what they do best, taking down bad individuals, rather than create unrealistic impression of BAC..
    1 Apr 2013, 03:28 PM Reply Like
  • EGalindo
    , contributor
    Comments (90) | Send Message
     
    There is wrong-doing...and this is precisely why it needed to be prosecuted. These settlements in lieu of prosecution will probably be going on for a long, long time...not that it hasn't been a long time already.
    3 Apr 2013, 03:23 PM Reply Like
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