UPDATE: US Bank Stocks Fall Over Unquantified Mortgage Risks

[bemildred]

Source: WSJ/Dow Jones

NEW YORK (Dow Jones)--There's an information vacuum in the U.S. banking industry--and bank stocks are falling into it.

Stocks of the biggest American lenders fell sharply Friday for the third-straight session as investors grappled with how high their costs could rise from broadening problems with mortgages left over from the housing bubble.

A host of issues related to foreclosures have emerged, ranging from "robo-signed" foreclosure documents to fears that banks might have to pay billions of dollars to buy back mortgages that went sour. "Given the difficulty in sizing the potential liabilities, these issues led investors to pull back," Nomura analyst Glenn Schorr wrote in a research note.

News of botched documentation, "robo-signers" processing hundreds of documents without verifying their contents, and growing concern about the issue by regulators such as the Office of the Comptroller of the Currency have investors worrying what the ultimate costs for banks will be. However, claims from mortgage-backed securities' representatives and warranties "are far more worrisome" for the big banks, said David Trone of JMP Securities.

Read more: http://online.wsj.com/article/BT-CO-20101015-712175.html

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LOL, "unquantified". It's always scary when you don't know just how bad you are screwed.

[tridim]

1. I don't usually consider falling stocks good news. But in this case.

:bounce: :woohoo: :bounce:

Die JP Morgan Chase, die!

[DJ13]

2. Banks cheated, took shortcuts, then got caught

The only way out of their self inflicted mess is to commit fraud.

This is what happens when the government allows the same criminals that caused the financial crisis to continue running the banks after being rescued with taxpayer money.

[Lugnut]

3. What a shame.

:nopity:

[girl gone mad]

4. TGIP.

lol.

[LiberalLoner]

5. Wants to hold up a sign saying

"Jump, fuckers!"

In the hopes that some banksters have offices on upper floors.

[DeSwiss]

10. Here ya go.....

[BeanCounting]

6. Yeah but...........

How long before little Timmy Geithner says we have to bail them out or face an apocalypse? You know it's coming. Fucking douche-bags!

[northernlights]

7. to which I say

Apocalypse NOW!

[DCKit]

12. Lil' Tim'll have to deal with some serious blowback.

The rightest of the right, the leftest of the left and everyone in between will be screaming for blood.

I think the banksters got as much as they're going to get. It's time for RICO charges.

[oldgrowth]

8. This why we have RICO laws.nt

[DeSwiss]

11. BINGO! n/t

[CanonRay]

16. The Kentucky AG already filed a RICO

[DeSwiss]

9. K&R

- If there had been more concern about "robo-signed" mortgage closing documents, we wouldn't be in this downward-pointing spiral now.

[Owl]

13. As always the Obama administration will be given the blame.

[w4rma]

15. I would welcome their fake "blame" if I were him. (nt)

[hatrack]

14. I would say "unquantifiable" - but that's just me . . .

:puke:

[bemildred]

17. You are such a pessimist.

We can pull some numbers out of our ass, just watch.

[Gin]

18. didn't someone in Congress say NO MORE BAILOUTS to the

financial industry? This time...they will pay and so will all of us again. Beam me up Scotty!

[lunatica]

20. We're doomed to pay anyway and many of us already are paying

There's a certain, albeit terrible justice when the perpetrators who usually don't have to pay for their crimes get to pay along with their victims. Let them eat the same shit they've served us.

[hatrack]

22. And if we don't the banks sure as hell will!

:hi:

[RUMMYisFROSTED]

19. 11M+ household mtgs are underwater. Add non-residential mtgs in...

And it's well over a trillion dollars.

Quantification.

[lunatica]

21. The robosigners will be the next wave of newly unemployed