Skip navigation
#headerOverlay{
color: #ccd6df;
font-size:11px;
line-height:130%;
}
#headerOverlay strong{
color: #ffd226;
}
#headerOverlay a {color:#ccd6df;text-decoration:none;}
#headerOverlay a:hover {color:#ffd226;}
#headerOverlay a:visited {color:#ccd6df;}
#headerOverlay a:visited:hover {color:#ffd226;}
Symbol Lookup
onloadAutoSuggest();
dapMgr.enableACB("SearchBox88x31",false);
dapMgr.renderAd("SearchBox88x31","&PG=CNBSEB&AP=1071&PN=CNBC",88,31);
cnbc_displayUsername("cnbc_usertime","cnbc_username");RegisterSign InMember CenterSign OutRegistercnbc_toggleUserState();HOMENEWSMARKETSEARNINGSINVESTINGVIDEOCNBC TVCNBC 360U.S.Asia-PacificEuropeEconomyEnergyGreenTechnologyBlogsWiresSlideshowsSpecial ReportsCorrections
dapMgr.enableACB("USNewsBlogs728",false);
dapMgr.renderAd("USNewsBlogs728","&PG=CNBGE7&AP=1390&PN=CNBC",728,90);
NetPutback Apocalypse
var cnbcSubHeaderId = document.getElementById('subheader_'+ 38911124);
cnbcSubHeaderId.innerHTML = document.getElementById('renderReaderContent').innerHTML;
Email: document.write("");document.write("NetNet"+"@"+"cnbc.com");document.write('');Call: 201-735-iNet (4638)Text Message: Text NETNET followed by your tip to 26221.
dapMgr.enableACB("USNewsBlogs300x250",false);
dapMgr.renderAd("USNewsBlogs300x250","&PG=CNBGE3&AP=1089&PN=CNBC",300,250);
Current DateTime: 03:37:16 20 Oct 2010LinksList Documentid: 38910464Expiration DateTime: 10/20/2010 3:39:44 PM
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910464_1","cnbcCommentsTxt" );
Bank of America's Shares at 17-Month Low on Mortgage Worries
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39756967", "38910464_1","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39756967", "38910464_1","cnbcCommentsTxt" );
Memo To Larry And Jamie: Mike Bloomberg Cannot Win
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39763875", "38910464_2","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39763875", "38910464_2","cnbcCommentsTxt" );
BofA and Fraudclosure: A Tragedy in 3 Acts
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39763440", "38910464_3","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39763440", "38910464_3","cnbcCommentsTxt" );
Will Someone Take the Gag Out of Freddie's Mouth Please?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39758251", "38910464_4","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39758251", "38910464_4","cnbcCommentsTxt" );
A Conflict of Interest at the Fed That Is Bad for Everyone
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39760665", "38910464_5","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39760665", "38910464_5","cnbcCommentsTxt" );
What I Saw At The Austerity Protests In France
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39758805", "38910464_6","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39758805", "38910464_6","cnbcCommentsTxt" );
Wall Street 2 Would Have Been So Much Better This Way
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39760337", "38910464_7","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39760337", "38910464_7","cnbcCommentsTxt" );
Why the BofA Put-Back Demand Has Wall Street Freaking Out
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39758253", "38910464_8","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39758253", "38910464_8","cnbcCommentsTxt" );
FBI Begins Foreclose Mess Investigation
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39756968", "38910464_9","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39756968", "38910464_9","cnbcCommentsTxt" );
Goldman Cuts Bankers' Bonus Pool
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39737920", "38910464_10","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39737920", "38910464_10","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910464_1","cnbcCommentsTxt" );
Current DateTime: 03:32:03 20 Oct 2010LinksList Documentid: 39085620FacebookTwitterRSSCurrent DateTime: 03:32:03 20 Oct 2010LinksList Documentid: 38852222John Carney
Runs this joint.
Cadie Thompson
Really, really runs this joint.
Ash Bennington
NetNet Special Reporter
Kate Kelly
Reports on the major Wall Street firms, trading, and regulation.
Herb Greenberg
A senior stocks commentator for the network appearing on CNBC TV and on CNBC.com.
Jeff Cox
A staff writer with CNBC.com, covering the gamut of issues affecting the stock market and the economy.
Lori Spechler
A Senior Editor at CNBC and a former trader / market maker in commodity options.
Lori Ann LaRocco
A Senior Talent Producer at CNBC.
Nicole Lapin
Runs the graveyard.
Current DateTime: 03:37:39 20 Oct 2010LinksList Documentid: 38910635Expiration DateTime: 10/20/2010 3:39:35 PM
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910635_1","cnbcCommentsTxt" );
No Sign Foreclosure Problems 'Systemic': White House
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39767501", "38910635_1","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39767501", "38910635_1","cnbcCommentsTxt" );
Cramer: Market Right, Media Wrong About Stocks
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39760172", "38910635_2","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39760172", "38910635_2","cnbcCommentsTxt" );
Wachovia Deal Yielded $21 Billion Profit: Wells Fargo CFO
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39760386", "38910635_3","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39760386", "38910635_3","cnbcCommentsTxt" );
EBay Shares Jump as Earnings, Sales Beat Expectations
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39760169", "38910635_4","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39760169", "38910635_4","cnbcCommentsTxt" );
Most Expensive Colleges 2010-2011
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39757067", "38910635_5","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39757067", "38910635_5","cnbcCommentsTxt" );
Netflix Results Improve on New Subscriber Growth
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39760327", "38910635_6","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39760327", "38910635_6","cnbcCommentsTxt" );
Precious Metals Dearer Than Ever
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39342209", "38910635_7","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39342209", "38910635_7","cnbcCommentsTxt" );
US Probes Whether Failed Bank Execs Hid Bad Loans
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39766591", "38910635_8","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39766591", "38910635_8","cnbcCommentsTxt" );
George Soros' Politics: Like Father, Like Son
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39765735", "38910635_9","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39765735", "38910635_9","cnbcCommentsTxt" );
ConocoPhillips CEO: Oil Could Climb to $90
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39766234", "38910635_10","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39766234", "38910635_10","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910635_1","cnbcCommentsTxt" );
» HelpCurrent DateTime: 03:32:03 20 Oct 2010LinksList Documentid: 38851925Subscribe to this RSS feed
Stay up to date with NetNet.
dapMgr.enableACB("ContextBlog300",false);
dapMgr.renderAd("ContextBlog300","&PG=CNBAL3&AP=1089&PN=CNBC",300,250);
setDefault('cnbc_textbody');Why the BofA Put-Back Demand Has Wall Street Freaking Out Published:
Wednesday, 20 Oct 2010 | 10:49 AM ET Text Size By: John CarneySenior Editor, CNBC.comDigg
getDiggParams(); Buzz
cnbc_createYBuzzURL(); function f
Really, really runs this joint.
NetNet Special Reporter
Reports on the major Wall Street firms, trading, and regulation.
A senior stocks commentator for the network appearing on CNBC TV and on CNBC.com.
A staff writer with CNBC.com, covering the gamut of issues affecting the stock market and the economy.
A Senior Editor at CNBC and a former trader / market maker in commodity options.
A Senior Talent Producer at CNBC.
Runs the graveyard.
Stay up to date with NetNet.
The put-back demand letter from investors in mortgage bonds serviced by Countrywide has Wall Street freaking out.
AP
The issue is not so much the content of the letter. It's who the letter came from.
It's frightening enough that many of the biggest bond investors in the world signed the letter. If you are a major financial institution, you don't want to find yourself at odds with Pimco, BlackRock, Neuberger Berman, or Met Life.
But the presence of two names on the list of complaining bond buyers was truly terrifying: the New York Fed and Freddie Mac.
Top Wall Street executives had assumed that the government agencies would not be on the other end of put-back demands, according to my sources. They believed that their put-back exposure would be limited to private market buyers of mortgage-backed securities. The far larger portfolios of securities owned or insured by the Fed or government-sponsored entities were assumed to be safe from put-back demands.
"The universe just got a whole lot bigger," one executive said.
What he means is that the "universe" of potential liability is greatly expanded, if the Fed and the GSEs start demanding that banks repurchase the mortgages they included in residential home-loan securitizations.
"We thought the government wouldn't come after us on these things. It bought them to stabilize the financial sector and the housing market. Going after us would undo both those things," one executive explained.
But with Freddie and the New York Fed, through its Maiden Lane operations, on the other end of the Bank of America BACloading...
Quote | Chart | News | Profilecnbc_comboQuoteMove('popup_bac_ID1EVIAC15839609');[BAC
Loading...
()
]
cnbc_quoteComponent_init_getData("bac","WSODQ_COMPONENT_BAC_ID1EVIAC15839609","WSODQ","true","ID1EVIAC15839609","off","false","inLineQuote");
put-back letter, the assumptions are changing. The losses from residential mortgage-backed securities (RMBS) repurchase obligations could grow to staggering levels.
Some on Wall Street expect that the Treasury and the US Fed will put the kibosh on put-back demands from Maiden Lane and Freddie Mac.
"This is a serious threat to financial stability. There's no way Tim and Ben let this play out," a senior banker told me, referring to Treasury Secretary Tim Geithner and Federal Reserve chair Ben Bernanke.
In short, Wall Street is betting that the bureaucrats will bail them out again.
Questions? Comments? Email us at document.write("");document.write("NetNet"+"@"+"cnbc.com");document.write('');
Follow John on Twitter @ twitter.com/Carney
Follow NetNet on Twitter @ twitter.com/CNBCnetnet
Facebook us @ www.facebook.com/NetNetCNBC
_________________________________________________
Read Full Article »
