28/11/2013
To close the files relating to mortgage
U.S. banks will incur additional adjustments to 104 billion dollars
Standard & Poor's U.S. agency estimated for credit rating that the largest U.S. banks may have to spend another $ 104 billion for the settlement of issues related to the mortgage as it seeks to get rid of the cost of the mortgage crisis high risk.
It quoted the "German" , about British Financial Times newspaper yesterday that the agency Standard & Poor's estimated that banks , including " JP Morgan Chase " and " Bank of America " may have to be on them to pay 56.5 billion dollars and 104 billion dollars on settlements mortgage legal with investors and other banks . According to the agency, the amounts at a maximum of about two-thirds of the estimates will dissipate the allocation of litigation valued at 154.9 billion dollars held by banks, but it will not shrink its capital specified regulators.
The banks of major U.S. have increased their reserves in the face of a new wave of lawsuits filed by investors banded together to say that they lost money due to buy bonds backed by mortgages, but madeup of bad loans, and reaped the banks billions of dollars from the sale of subprime mortgages through years, which led to the financial crisis in 2008.
Was JPMorgan has signed this month with investors on an interim settlement worth 4.5 billion dollars on bonds tied to mortgages , while still conducted evaluation process to determine the fair value of the settlement of a planned similar worth 8.5 billion dollars between Bank of America and investors in a district court in New York .
According to a senior analyst with the agency Stewart Placer in the report that cases of mortgage-related litigation brought the gift of a second wind in recent times and stretched beyond the demands of investors.
Expects " S & P " the emergence of other amounts worth an estimated $ 6.5 billion resulting from the settlement of Bank of America's planned $ 8.5 billion dollars, adding that it is unlikely to result in legal costs additional to cut the credit rating of banks in spite of providing " S & P " negative outlook for Bank of America, and return the outlook partly to the ambiguity of the degree of exposure of the bank issues mortgages change.
