http://www.bloomberg.com/news/2010-10-14/bank-of-america-re-remics-reduce-mortgage-debt-as-basel-capital-rules-loom.html
Oh now is a nice time to try to cover your ass Bank of America.
What would that extra layer of protection actually be,assigning the titles
instead of leaving them blank?
And just exactly how did you fix all of those blanks, that your once again trying to pass off?
It would behoove you at this point to just swallow your own debt rather than furthering the criminal charges against you!
Bank of America Corp., seeking to reduce risk and meet new capital standards, upgraded billions of dollars of distressed mortgage bonds by repackaging them into new securities using a variation of a Wall Street technique that failed during the credit crisis.
The transactions, known as re-remics, are designed to add a layer of protection to residential mortgage-backed securities that sustained losses, enabling them to regain investment-grade ratings. The strategy helped the bank pare its RMBS holdings by $5.2 billion in the second quarter, or about 15 percent, according to a company filing
‘Scrubbing’ Balance Sheets
‘Toxic Waste’
Financial Engineering
In a re-remic, the senior mortgage bonds that have lost their investment-grade ratings are placed in a new trust, which issues a new set of senior and junior securities, with the higher-ranking bonds receiving first rights to cash flows from the original home loans. The junior securities in the re-remics provide an additional layer of protection to the cushion created by subordinated bonds from the original securitization. They’re second in line to bear any losses, which means more senior investors wouldn’t suffer any damage unless the junior securities were wiped out.
