Mortgage the future
State AGs-bank deal hangs in balance
Last Updated: 4:12 AM, August 18, 2011
Labor Day or bust!
If the country’s major banks don’t reach an agreement with the 50 state attorneys general and federal regulators in the next few weeks, a global agreement to settle the widespread foreclosure fiasco is likely going to be sunk for good, sources told The Post.
“There just comes a time when some attorneys general have to make a decision whether they’re in or they’re out,” said one source.
Not even a deal that involves the vast majority of states -- but excludes hardliner holdouts like New York AG Eric Schneiderman and Massachusetts AG Martha Coakley -- is likely to pass muster.
State AGs continue to disagree on major issues surrounding a possible deal, such as whether to release big banks, including Bank of America, JPMorgan Chase, Wells Fargo, Ally Bank and Citigroup, from further litigation, sources said.
Indeed, Schneiderman is currently challenging a separate $8.5 billion settlement between BofA and 22 large institutional investors over losses related to the purchase of soured BofA mortgage-backed securities.
At this point, Iowa AG Tom Miller and the Obama administration appear eager to wrap up a deal even if its means excluding a few states, such as Nevada, Delaware, Massachusetts and the Empire State.
However, sources said that even the remaining state AGs aren’t in complete accord over a raft of issues.
The most likely outcome for the talks is that individual states will try and strike their own deals, sources said.
If the country’s major banks don’t reach an agreement with the 50 state attorneys general and federal regulators in the next few weeks, a global agreement to settle the widespread foreclosure fiasco is likely going to be sunk for good, sources told The Post.
“There just comes a time when some attorneys general have to make a decision whether they’re in or they’re out,” said one source.
Not even a deal that involves the vast majority of states -- but excludes hardliner holdouts like New York AG Eric Schneiderman and Massachusetts AG Martha Coakley -- is likely to pass muster.
AP
New York Attorney General Eric Schneiderman is going out of his way to prevent BofA from reaching a mortgage settlement deal.
Indeed, Schneiderman is currently challenging a separate $8.5 billion settlement between BofA and 22 large institutional investors over losses related to the purchase of soured BofA mortgage-backed securities.
At this point, Iowa AG Tom Miller and the Obama administration appear eager to wrap up a deal even if its means excluding a few states, such as Nevada, Delaware, Massachusetts and the Empire State.
However, sources said that even the remaining state AGs aren’t in complete accord over a raft of issues.
The most likely outcome for the talks is that individual states will try and strike their own deals, sources said.
Read more: http://www.nypost.com/p/news/business/mortgage_the_future_hxbaAA9nrw2m6Uj9suUNDM#ixzz1VbOOmww8
