The Zacks Analyst Blog Highlights: Bank of America Corporation, Freddie Mac, Fannie Mae, JPMorgan Chase & Co. and Credit Suisse

 The Zacks Analyst Blog Highlights: Bank of America Corporation, Freddie Mac,
           Fannie Mae, JPMorgan Chase & Co. and Credit Suisse Group

PR Newswire

CHICAGO, Nov. 12, 2012

CHICAGO, Nov. 12, 2012 /PRNewswire/ -- announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include Bank of America Corporation
(BAC), Freddie Mac (FMCC), Fannie Mae(FNMA), JPMorgan Chase & Co. (JPM) and
Credit Suisse Group (CS).


Today, Zacks is promoting its ''Buy'' stock recommendations. Four daily picks
are offered free.

Here are highlights from Monday's Analyst Blog:

BofA Loses Bid to Dismiss FHFA Claim

A U.S. District Judge in Manhattan cancelled the bid of Merrill Lynch – a wing
of Bank ofAmerica Corporation(BAC) – to dismiss a lawsuit filed by the Federal
Housing Finance Agency (FHFA) against it. The lawsuit pertains to the sale of
billions of dollars worth of risky mortgage-backed securities (MBS) to
government-sponsored entities (GSEs) – Freddie Mac (FMCC) and Fannie Mae(FNMA)
– via misleading statements.

The U.S district Judge allowed the FHFA to pursue its legal proceedings over
Merrill Lynch's fraudulent representations. Additionally, the Judge allowed
proceedings for claims pursued under the Washington, D.C. securities law.
Moreover, proceedings for punitive damages were allowed along with the right
to annul any doubtful mortgage transaction. Yet, some of the fraud claims were

Freddie Mac and Fannie Mae suffered huge losses on MBS worth $200 billion
during the financial crisis. As a result, in 2008, the regulators apprehended
these two GSEs and FHFA became their conservator. BofA, along with Merrill
Lynch and Countrywide Financial, had underwritten nearly $57.5 billion of
these securities.

Therefore in September last year , the FHFA filed a lawsuit against seventeen
of the Wall Street biggies, including BofA, JPMorganChase & Co. (JPM) and
others. The regulators opined that the losses suffered by the two GSE's were
the direct result of the failure of the banks to properly disclose the risky
nature of the securities sold. The lawsuits are aimed at recouping these

Earlier this year, JPMorgan and Credit Suisse Group (CS) also came up with
bids to dismiss the FHFA lawsuit, but were rescinded as well. The trial is
scheduled for June 2, 2014 hearing.

Undoubtedly, BofA's legal woes are here to stay. These legal troubles will
very likely result in mounted expenses and affect the company's top line.
However, the measures undertaken by the regulatory and legal authorities to
come down hard on such unwarranted activities of the banks will let the
investors breathe a sigh of relief.

BofA currently retain a Zacks #3 Rank, which translates into a short-term Hold
rating. Considering the fundamentals, we also maintain a long-term Neutral
recommendation on the stock

Today, Zacks is promoting its ''Buy'' stock recommendations. Four daily picks
are offered free.

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