Is Bank of America doomed?
Testimony in a New Jersey foreclosure case, decided last week, may spell big trouble for Bank of America. If what a bank employee said on the stand proves to be accurate, paperwork problems from the 2008 purchase of failing mortgage provider Countrywide could leave the Bank on the hook for billions.
Based on this case, it seems Countrywide pledged 96% of its mortgages to secure mortgage backed securities. However, it seems that it commonly screwed up related paperwork in a manner that it cannot fix.
So, is Bank of America doomed?
Will taxpayers bail it out?
My clients want to know.