Bloomberg: Pimco, New York Fed Said to Seek BofA Repurchase of Mortgages
Bloomberg story: Pimco, New York Fed Said to Seek BofA Repurchase of Mortgages.
Pacific Investment Management Co., BlackRock Inc. and the Federal Reserve Bank of New York are seeking to force Bank of America Corp. to repurchase soured mortgages packaged into $47 billion of bonds by its Countrywide Financial Corp. unit, people familiar with the matter said.
This is big!
I change my base case scenario. This has the potential to start another banking crisis and cause serious fall in risk-asset prices.