By Joe Weisenthal
CNBC confirms that the New York Fed is part of a consortium that have launched a lawsuit against BofA regarding Countrywide mortgages.
Shares are now off 3%.
Bank of America is getting hit in the credit markets as well. Spreads on Bank of America CDS were at 185 bps prior to the news, then widened to 200, but have since tightened to 195, according to Markit.
Original post: Interesting! Shares of Bank of America (BAC) are getting crushed on headlines that the New York Fed and PIMCO are about to jump on the Bank of America mortgage putback bandwagon.
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