THE MORTGAGE foreclosure scandal is taking on epic proportions: the New York Federal Reserve Bank has joined a consortium that’s pressuring Bank of America to buy back bad mortgages that were packaged into $47 billion worth of bonds sold by Countrywide Mortgage, now a part of BoA. Meanwhile, Bank of America has sued the FDIC over alleged fraud by a failed lender that BoA says double and triple-pledged mortgages on Mortgage Backed Securities.
How does this all play out? We have no idea, but it doesn’t look good. Abbot and Costello illustrate how this whole thing happened in the first place.
Also: a look back at the Pied Piper of Hamelin.