Eight months ago, when approached by investors to repay a portion of their losses in mortgage bonds, Bank of America CEO Brian Moynihan said no way. He said that his firm had followed the rules and that he was going to fight this one to the end. The outcome of that “fight” may indicate that the big banks are far from paying their tab …
- Eh tu, Morgan Stanley? The Wall Street Journal is reporting this morning that the Securities and Exchange Commission is looking into whether Morgan Stanley, too, broke securities laws when it structured mortgage securities and then made money by betting against them. The SEC already has brought a similar case against Goldman.