US banks

US Banks to Rally on Deal

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US Banks offered deal on faulty mortgage foreclosure practices BAC, JPM, C, WFC US banks that allegedly engaged in improper mortgage foreclosure practices have been offered a deal by State prosecutors that limits their legal liability in exchange for a multibillion-dollar payment, it was reported Monday citing several people with direct knowledge of the discussions. The proposed deal effectively releases the companies; Bank of America Corp. (NYSE:BAC), J.P. Morgan Chase & Co. (NYSE:JPM), Wells Fargo & Co. (NYSE:WFC), Citigroup Inc. (NYSE:C) and Ally Financial from legal liability for allegedly wrongful securitization practices, the newspaper cited the people as saying. The … Read more

U.S. Must ‘Stop Punishing Banks,’ Halt Loan Claims, FBR Says

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Sept. 6 (Bloomberg) — U.S. government-backed firms and agencies should “stop punishing banks” and suspend demands for mortgage repurchases because they are impeding an economic recovery, according to Paul Miller of FBR Capital Markets & Co. Repurchase losses may total $121 billion, wrote Miller, a former federal bank examiner, in an analyst’s note to clients dated today. He previously said the tally might range from $54 billion to $106 billion. Losses for Bank of America Corp. could reach $66 billion in some scenarios, he wrote. Fannie Mae, Freddie Mac, the Federal Housing Authority and the Federal Housing Finance Authority “are … Read more