NEW YORK ( TheStreet) -- In assessing the risks of mortgage-related litigation -- and translating it into buy, hold or sell -- bank investors may want to consider the fact that very few parties have been successful in forcing banks to pay enormous amounts of money via the court system.
In fact, considering the outcome of such cases so far, one could argue that the most significant concern pertains to "headline risk" -- widely broadcast reports of big financial exposure that don't turn out to be accurate.
In actual court cases, plaintiffs have had pretty miserable results so far. Homeowners haven't been able to stop banks from seizing their property or return their foreclosed-upon homes. (Nor have
Bank of America (BAC) disclosed in a Nov. 5 securities filing that investors holding $375 billion worth of mortgage debt had filed suit. Within hours, that number had dwindled to $54 billion because a court found in the bank's favor regarding a single case.
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