Chase: Buying Back Mortgages Could Be Costly
In a report to shareholders, J.P. MorganChase said the cost to buy back troubled mortgage-backed securities could top $120 billion, but unless it is forced to do that, the foreclosure freeze is much ado about nothing.
The bank’s fixed-income strategists, Ed Readon and John Sim, said in a note that the issue was overestimated in media and market analysts’ reports and costs related to resolving these paperwork issues were “likely to be minimal. … They are process oriented and can be fixed in the near term.”
Source: Dow Jones Business News, Chris Dieterich (10/18/2010)