This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Banks' Worst Fear for 2012

Schneiderman has said little about his investigation, though The Huffington Post reported last year that Bank of America is a target, and that Schneiderman has also sought documents from Goldman Sachs and Morgan Stanley.

A legal victory in that case--assuming one is eventually brought--would lower the bar significantly for private litigation, Miller says.

"If he wins and they're fraudulent you could see the banks having to buy all this stuff back, or would they just negotiate some big deal?" Miller wonders aloud.

And how much would such a deal cost the banks?

"That number is so big I don't even want to think of it," Miller says.

A Nov. 14 editorial in The New York Times states that Schneiderman and other "rebel attorneys general want the banks to hand over more than $200 billion, which would enable the government to write down tens of millions of mortgages." The editorial, which is republished on Schneiderman's website, does not say where that figure came from. A Schneiderman spokesman declined to discuss details of the investigation.

But that $200 billion figure--assuming it is in fact what Schneiderman and the others are seeking --would not take into account private litigation, nor what would presumably be sweeping reforms in the mortgage business going forward, potentially taking a bite out of future bank profits.

As far as U.S. banks are concerned, even the threat of a Eurozone breakup may look tame alongside New York State's Attorney General.

-- Written by Dan Freed in New York.

Readers Also Like:


Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BAC $16.50 -1.02%
C $54.09 -0.84%
GS $206.21 -1.10%
JPM $65.78 -0.63%
MS $38.20 -1.40%

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs