Bank of America Stock Weighed Down By Bad Mortgage Loans

Bank of America is still digging out from its 2008 purchase of Countrywide.

In 2011, the bank has spent about $30 billion settling mortgage claims.

Subprime lending was the largest cause of the housing crash and Countrywide was the largest subprime lending firm.

The NYT says: The huge overhang of bad mortgage debt has been weighing down shares of Bank of America for months, despite deals like an $8.5 billion agreement in June with private investors to resolve claims related to bad loans underwritten by Countrywide. Investors fear the bank could still have to pay tens of billions of dollars more. Bank of America shares were trading at just over $7 at midday Thursday, down more than 50 percent from where they started 2011.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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