Bank Watch roundup: Bank of America sued again over bad loans
05/15/2014 7:00 AM
05/15/2014 8:40 AM
BANK OF AMERICA SUED AGAIN OVER BAD LOANS: This time, ResCap (formerly the mortgage servicing business at Ally Financial) is suing the Charlotte bank and a bunch of other banks over loans sold to ResCap that later went bad, the Wall Street Journal reports. ResCap either sold them or bundled them into securities and sold them, and when they went bad became the target of lawsuits, the bank alleges. ResCap says they weren't told about the loans' "defects."
GREEN TREE FAILS SERVICING TESTS; BOFA AND WELLS HAVE FIXED PROBLEMS: A new report from National Mortgage Settlement monitor Joseph Smith shows that a company that's bought hundreds of thousands of loans from Bank of America and other big banks hasn't lived up to the servicing standards required of it. The former North Carolina banking commissioner also found that BofA and Wells have fixed the problems that led them to fail earlier tests.
BANK OF AMERICA CFO GIVES LITTLE NEW INFORMATION ON CAPITAL PLAN: Bruce Thompson was over in London early Wednesday morning, and though he got asked about what's going on with the capital miscalculation and the capital plan resubmission, he didn't have a whole lot new to say.
WELLS PROBABLY WON'T PUT ITS NAME ON NEW MINNESOTA STADIUM: The Viking's new digs probably won't have the Wells Fargo name on it, CEO John Stumpf tells the Minneapolis Star-Tribune. “We traditionally don’t name stadiums,” Stumpf told them. It's true. The only arena I can think of that has the Wells name is in Philadelphia, assumed in Wachovia deal. And of course there's the Wells Fargo Championship golf tournament, née Wachova Championship.
BANK OF AMERICA SELLING MORE MICHIGAN BRANCHES: 13 more branches will go to Huntington Bancshares, the Ohio bank that's already recently bought 11 in the state from Bank of America, Bloomberg reports.
CITIGROUP FIRES ANOTHER DOZEN OVER MEXICAN FRAUD: That includes four high-ranking executives in that country, The New York Times reports. The firings come after the bank's board heard a briefing on what an internal investigation found regarding the $400 million Banamex fraud.
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