04-01-2011, 02:25 PM
A cynic might read this statement:
"The bank said the payments covered all outstanding and potential claims against it by Freddie Mac"
And wonder if this payment was almost voluntary to protect it against far larger future claims that may have been lurking in the depths?
http://www.bbc.co.uk/news/business-12108655
"The bank said the payments covered all outstanding and potential claims against it by Freddie Mac"
And wonder if this payment was almost voluntary to protect it against far larger future claims that may have been lurking in the depths?
http://www.bbc.co.uk/news/business-12108655
Quote:3 January 2011 Last updated at 22:38
Bank of America pays Fannie Mae and Freddie Mac $2.6bn
The bank said the payments covered all outstanding and potential claims against it by Freddie Mac
Bank of America has agreed to pay US mortgage giants Fannie Mae and Freddie Mac about $2.6bn (£1.7bn) to settle claims it sold them bad home loans.
There had been fears the bank would be forced to buy back billions of dollars of mortgage loan investments.
"These actions resolve substantial legacy issues in the best interest of our shareholders," the bank's boss Brian Moynihan said.
Shares in the US's biggest bank closed up 6.5% following the announcement.
The bank said it had made a cash payment of $1.28bn to Freddie Mac and one of $1.34bn to Fannie Mae on 31 December.
It said these payments "extinguish all outstanding and potential mortgage" claims made against it by Freddie Mac, and "substantially resolves" those made by Fannie Mae.
"Bank of America believes that it has addressed its remaining exposure to repurchase obligations for residential mortgage loans sold directly to Fannie Mae and Freddie Mac," the bank said.
The claims relate to loans sold by Countrywide Financial Corporation, which Bank of America bought in 2008.
Fannie Mae and Freddie Mac said the loans were made without meeting investors' underwriting requirements, such as income levels and home values.
"This significant agreement with Bank of America is a fair and responsible resolution of these outstanding claims," said Fannie Mae boss Michael Williams.
The shadow is a moral problem that challenges the whole ego-personality, for no one can become conscious of the shadow without considerable moral effort. To become conscious of it involves recognizing the dark aspects of the personality as present and real. This act is the essential condition for any kind of self-knowledge.
Carl Jung - Aion (1951). CW 9, Part II: P.14