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.

This entry was posted on Tuesday, October 19th, 2010 at 12:32 pm and is filed under Markets, U.S. Housing. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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