Wednesday, June 29, 2011

BOA Settles Countrywide MBS

Bank of America annouced a $8.5 billion settlement for resident mortgage securities issued by Countrywide.  Their press release stated:

Bank of America Corporation today announced that it has reached an agreement to resolve nearly all of the legacy Countrywide-issued first-lien residential mortgage-backed securitization (RMBS) repurchase exposure, representing 530 trusts with original principal balance of $424 billion. 
BOA's partners in crime stand to gain from the deal.

The 22 investors that have committed to support the settlement include many of the major U.S. and foreign institutional investors in RMBS:

  • AEGON USA Investment Management LLC.
  • Bayerische Landesbank.
  • BlackRock Financial Management, Inc.
  • Federal Home Loan Bank of Atlanta.
  • The Federal Reserve Bank of New York's Maiden Lane entities.
  • Goldman Sachs Asset Management L.P.
  • ING Investment Management L.L.C.
  • ING Bank fsb.
  • ING Capital LLC.
  • Invesco Advisers, Inc.
  • Kore Advisors, L.P.
  • Landesbank Baden-Wuerttemberg and LBBW Asset Management (Ireland) PLC, Dublin.
  • Metropolitan Life Insurance Company.
  • Nationwide Mutual Insurance Company and its affiliate companies.
  • Neuberger Berman Europe Limited.
  • New York Life Investment Management LLC.
  • Pacific Investment Management Company LLC (PIMCO).
  • Prudential Investment Management, Inc.
  • Teachers Insurance and Annuity Association of America.
  • Thrivent Financial for Lutherans.
  • Trust Company of the West and its affiliated companies controlled by The TCW Group, Inc.
  • Western Asset Management Company.
Other financial Masters of the Universe could be hidden under:

The settlement with The Bank of New York Mellon (BNY Mellon), the trustee for the RMBS trusts covered by the settlement, is supported by a group of major institutional investors represented by Gibbs & Bruns LLP, and is subject to final court approval and certain other conditions. 
Who holds the remnants of Carlyle Capital Corporation and how might they stand to benefit from the BOA settlement?  Let's hope it's not the DBD's, Carlyle's billionaire founders.