http://finance.yahoo.com/news/Treasury-Foreclosure-woes-not-rb-2286295932.html?x=0&sec=topStories&pos=8&asset=&ccode=
I had to laugh that it was a member of the oversight panel that corrected Phyllis, after all she is the chief of Treasury's Homeowner Preservation Office.
And you wonder why are country is swirling down the toilet drain. With people like Phyllis running the show, we don't stand a chance of survival.
The U.S. Treasury does not see a systemic financial threat from the risk that banks will be forced to buy back mortgage securities due to faulty foreclosure documents, a senior Treasury official said on Wednesday.
A member of the Congressional Oversight Panel, Damon Silvers, objected to Treasury's benign view of the threat, citing a demand by eight large investors, including the Federal Reserve Bank of New York, that Bank of America (NYSE:BAC - News) take back some $47 billion in mortgage bonds because of mishandled mortgages backing them.
According to Fed estimates, Bank of America would likely have to book a $23 billion loss on the securities if forced to buy them back, Silvers said.
"Five such requests, if honored, to Bank of America will amount to more than the current market capitalization of Bank of America, which is now $115 billion," Silvers told Caldwell.
"Now, do you wish to retract your statement that there is no systemic risk in this situation? And the word is risk -- not certainty -- but risk," he added. "I would urge you to do so because these things can become embarrassing later."
