Analyst Dick Bove says the mortgage foreclosure crisis could cost the banks as much as $80 billion dollars. He is quoted in an article by Jeff Cox from CNBC.
Banks could face losses of over $80 billion from the foreclosure mess—not so much from the moratorium on home seizures but from the flood of homeowner and investor lawsuits likely to follow, analyst Dick Bove said Friday.
The lawsuits are likely to focus on “fraud at every level of the process”—from packaging mortgages into bonds to selling them to investors, the Rochdale Securities analyst said in a note to clients.
The legal fallout could cost the industry more than $80 billion, about 10 times the amount that Bove sees banks losing from the foreclosure halt itself.
I really like that phrase, “fraud at every level of the process.” It’s a beaut. It also sums up what has been going on for the last two years, and industry run amok.
James Pilant
Pilant's Business Ethics Blog 
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