Four banks face big losses on repurchases + Banks May Face $134 Billion Loss on Loan Refunds

[mEDITate-OR:

not see a little rain falling on their heads....

While it was obvious that the Big Bailed Out Banks, that bought up mortgage originating companies that were in trouble, would face HUGE claims, there have been few articles that quantify those potential claims. Here are two new articles that do. Guesstimate, true; but they tried.

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Bank of America Corp. and JPMorgan Chase & Co. are among 11 lenders that could suffer $133.8 billion in combined losses as mortgage-bond investors and insurers demand refunds for soured loans

That’s the base estimate by analyst Chris Gamaitoni, who told clients costs may range from $55.3 billion in a best-case scenario to $179.2 billion at worst.

The losses would be in addition to $28 billion of buyback demands by Fannie Mae and Freddie Mac that Compass previously predicted

Lenders have been barraged by claims from mortgage buyers and insurers who say banks sold housing debt to investors based on untrue or misleading data about home loans.

The estimated losses exceed 10 percent of tangible book value at eight of the banks

While solvency isn’t at risk, the drain on profit could last for years

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Four banks face big losses on repurchases

http://www.reuters.com/article/idUSN1821994820100818

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Banks May Face $134 Billion Loss on Loan Refunds

http://www.bloomberg.com/news/2010-08-18/bofa-jpmorgan-may-lead-banks-facing-134-billion-loss-on-loan-repurchases.html

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