Bank of America gets sued for Billions
source: http://www.nytimes.com/2009/12/13/business/13gret.html?_r=1
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- jeffissleeping
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BNP and Deutsche Bank have sued Bank of America in federal court in Manhattan. Both accuse Bank of America of breaching its custodial and trustee duties to Ocala. The suits shed light not only on the complexities of the mortgage machine but on how failsafe mechanisms in these byzantine structures didn’t work.
People familiar with the mortgage machine’s innards say problems were industrywide.
“If you look at the way these structures were built up, there were supposed to be safeguards at every step to make sure all these things were done properly,” said O. Max Gardner III, a lawyer in Shelby, N.C., who represents financially troubled consumers. “When you see so many problems across the country with the total inability to produce the documents, then it really makes you wonder: did they really do this?”
According to the court documents, Bank of America dropped a number of balls. It improperly transferred $3.7 billion out of Ocala to accounts that had no connection to the investment vehicle, Deutsche Bank said, and it didn’t track the mortgages bought and sold on behalf of Ocala. Bank of America also misstated the amount of mortgages held as security for Ocala, the suit contends.
Last August, for example, after Taylor Bean failed, Bank of America reported that Deutsche Bank’s investment was secured by mortgages valued at over $1.16 billion. But, Bank of America’s records showed at least $470 million of these mortgages had already been delivered to Freddie Mac, the lawsuit said. Ocala’s trustee “failed to maintain internal documentation necessary to establish Ocala’s ownership of purchased mortgages,” Deutsche Bank maintains.
Asked about the lawsuits, a Bank of America spokesman provided a statement: “We share BNP and Deutsche Bank’s concern about the handling of funds by Taylor, Bean & Whitaker and Colonial Bank and have been actively pursuing recoveries in the Colonial and TBW bankruptcies on behalf of these and other investors in the Ocala facility.”
http://www.nytimes.com/2009/12/13/business/13gret.html?_r=1
People familiar with the mortgage machine’s innards say problems were industrywide.
“If you look at the way these structures were built up, there were supposed to be safeguards at every step to make sure all these things were done properly,” said O. Max Gardner III, a lawyer in Shelby, N.C., who represents financially troubled consumers. “When you see so many problems across the country with the total inability to produce the documents, then it really makes you wonder: did they really do this?”
According to the court documents, Bank of America dropped a number of balls. It improperly transferred $3.7 billion out of Ocala to accounts that had no connection to the investment vehicle, Deutsche Bank said, and it didn’t track the mortgages bought and sold on behalf of Ocala. Bank of America also misstated the amount of mortgages held as security for Ocala, the suit contends.
Last August, for example, after Taylor Bean failed, Bank of America reported that Deutsche Bank’s investment was secured by mortgages valued at over $1.16 billion. But, Bank of America’s records showed at least $470 million of these mortgages had already been delivered to Freddie Mac, the lawsuit said. Ocala’s trustee “failed to maintain internal documentation necessary to establish Ocala’s ownership of purchased mortgages,” Deutsche Bank maintains.
Asked about the lawsuits, a Bank of America spokesman provided a statement: “We share BNP and Deutsche Bank’s concern about the handling of funds by Taylor, Bean & Whitaker and Colonial Bank and have been actively pursuing recoveries in the Colonial and TBW bankruptcies on behalf of these and other investors in the Ocala facility.”
http://www.nytimes.com/2009/12/13/business/13gret.html?_r=1
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atomiclegion
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Ha Ha, Skank of America!!!
- 2 years ago
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atomiclegion
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csmonut
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And these are the bright people that are running the monetary system of this country.
What a joke......they should be put on display in the Smithsonian as the "before" evolution took place. - 2 years ago
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csmonut
