U.S. Must ‘Stop Punishing Banks,’ Halt Loan Claims, FBR Says
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U.S.-backed firms and agencies should “stop punishing banks” and suspend demands for mortgage repurchases because they’re impeding an economic recovery, according to Paul Miller of FBR Capital Markets & Co.
Repurchase losses may total $121 billion, wrote Miller, a former federal bank examiner, in an analyst’s note to clients dated today. He previously said the tally might range from $54 billion to $106 billion. Losses for Bank of America Corp. could reach $66 billion in some scenarios, he wrote.