New Threat to Banks: Mortgage Security 'Put Backs'?

Could the whole U.S. banking system return to the brink if Bank of America is forced to buy back tens of billions in soured mortgage-backed securities? At a public hearing today on loan modifications and foreclosures, a Treasury official dismissed that concern despite doubts raised by the Congressional Oversight Panel for the Troubled Asset Relief Program, the group charged by Congress with assessing the effectiveness of the federal bank bailout. Bank of America is facing a demand by...Full Story
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