Tuesday, October 19, 2010

Putbacks! And So It Has Begun ...

to paraphrase Karl Denninger...

So "the holders of over 25% of the Voting Rights in more than $47 billion of Countrywide-issued RMBS" from yesterday's post about the link at Market Ticker turn out to be PIMCO, the Federal Reserve Bank of New York, Blacklock, and MetLife.

New York Fed??

Pimco, New York Fed Said to Seek BofA Repurchase of Mortgages
(10/19/2010 Bloomberg)

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.

The bondholders wrote a letter to Bank of America and Bank of New York Mellon Corp., the debt’s trustee, citing alleged failures by Countrywide to service the loans properly, their lawyer said yesterday in a statement that didn’t name the firms.

That "statement" yesterday is this.

So that's why PIMCO's Bill Gross has been buying MBS on the margin...

But New York Fed?? I guess they are very worried about the $1.2 trillion "worth" of MBS that the Fed carries on the balance sheet.

And why Countrywide? Maybe the plea bargain by Angelo Mozilo the other day has something to do with it... Some good info from Angelo to avoid jail time, maybe.

Bear Stearns, Lehman Brothers. Marked for dead. Now Bank of America?


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