Dear Brian Moynihan: Here's Why Bank Of America Owes The Bond Insurers $10-$20 Billion

Can’t get enough of mortgage repurchase-gate?

For your reading pleasure, here’s the letter that was sent in early September to Bank of America CEO Brian Moynihan from the Association of Financial Guaranty Insurers (the monolines) arguing why they believe his bank will owe their members $10-20 billion for mortgage repurchases.a

(Remember last week this issue really spilled out into the open — though it’s been brewing for a long time. Manal Mehta, the hedge fund manager who is short BofA on repurchase risk is also long the monolines on this idea that they’ll recoup a significant amount in this next phase of the crisis.)

Association of Financial Guaranty Insurers Letter to Bank of America-1

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