Credit Ratings Cut For Bank Of America, Wells Fargo

Bank of America and Wells Fargo have a disproportionate share of their assets in mortgages and have been particularly hard hit by the housing slump. Their stock has taken a beating over the past four years.

Now Moody’s has lowered the banks credit ratings. Bank of America stock took a particularly hard hit this week. The bank is laying off about 40,000 workers.

The major banks are being targeted by various government agencies (from state Attorney Generals to the representatives of Fannie and Freddie).

Under this government assault, under the restrictions of the CRA and Dodd-Frank, bank stocks seem like a bad bet.

More bad news for banks: Bank of America Corp. (BAC) is among a group of lenders that may face a wave of new lawsuits claiming the system they’ve used for more than a decade to register mortgages cheated cash-strapped counties out of millions of dollars.
Dallas County District Attorney Craig Watkins said state attorneys general and county officials across the U.S. have expressed interest in his lawsuit against Mortgage Electronic Registration Systems Inc. and Bank of America, filed in Texas state court on Sept. 21. Dallas County could be owed as much as $100 million in filing fees, he said.

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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