Bank of America Corp., the biggest U.S. lender by assets, paid $2.8 billion to Freddie Mac and Fannie Mae after the U.S.-owned firms demanded the company buy back mortgages they said were based on faulty data. The bank rose as much as 5.6 percent in New York trading.
So BAC pays out $2.8 billion. What was and is the loss that was potentially going to be shoved up their tails on this deal?
This, incidentally, does not cover servicing problems, which means it’s arguable that if transfers weren’t made it won’t cover that either. This remains an unknown.
AGAIN: How much money is the taxpayer on the hook for as a consequence of this arguably unlawful allocation of Federal (that is, tax) money from the government to BAC on a “present value” or even “reasonably-foreseeable loss” basis – without a bill originating in The House?