Reuters-
American International Group (AIG.N) is holding “hostage” an $8.5 billion deal to compensate investors who bought Bank of America Corp (BAC.N) mortgage securities, supporters of the deal said in court filings ahead of a hearing on Wednesday.
The supporters urged the judge overseeing the deal to reject AIG’s efforts to delay its approval, according to documents submitted to the court late on Friday.
Bank of America agreed to the settlement in June 2011 to resolve claims by investors who had bought $174 billion of mortgage-backed securities issued by Countrywide Financial before the U.S. housing crisis. The investors said Countrywide, acquired by Bank of America in 2008, misrepresented the quality of the underlying home mortgages, which went sour in the crisis.
[REUTERS]
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The big words “Securities Fraud” due to the trust were violated and are empty and no good?
It’s hard to have sympathy if, as a former home owner, you’ve been given nothing but contempt. It would be cruel to suggest that they “made a bet and lost so deal with it”. Remember what some investors said about homeowners: “Caveat emptor losers, you should have thought about what you were signing before you signed it. No one put a gun to your head to take the deal.”
Most investors, by an large, don’t really care if millions of Americans can barely afford a place to live. (They’ll build luxury homes for people who have the money, of course. That’s more lucractive.)
Investors will be screaming about the rule of law and the Constitution, while millions are bankrupted and foreclosed. It’s a bit disconcerting when they discover that they too are on the wrong side of Capitalism.