Mortgage Debacle Costs Banks $66 Billion as Suits Sap Profit
Faulty mortgages and foreclosure abuses have cost the nation’s 5 biggest home lenders at least $65.7B, according to a tally by Bloomberg News, and new claims may push the total to twice that.
Palm Coast, FL – September 19, 2011
Faulty mortgages and foreclosure abuses have cost the nation’s five biggest home lenders at least $65.7 billion, according to a tally by Bloomberg News, and new claims may push the industrywide total to twice that amount.
Bank of America Corp., the largest U.S. lender, had the biggest costs, totaling $39.1 billion since the start of 2007, according to data compiled by Bloomberg. JPMorgan Chase & Co., ranked second by assets, followed with $16.3 billion, and Wells Fargo & Co., the biggest U.S. home lender, had $5.09 billion, the data show.
The costs have eclipsed predictions from bankers and analysts that lenders would suffer only modest damage from what Bank of America Chief Executive Officer Brian T. Moynihan has called “the mortgage mess.” Paul Miller, the FBR Capital Markets & Co. analyst, said costs for all banks could surpass $121 billion as the bill comes due for lax lending practices.
Read More >>>> Bloomberg
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