BofA’s Latest Lawsuit, GE’s Reputed Move On HCBK: Financial Biz Update

Bank of America Corporation’s (NYSE:BAC) latest lawsuit it faces comes as a non-surprise to Paul Miller at FBR, who believes that the amount being sought could have been far higher. However, he thinks the ongoing dispute BofA has with Fannie Mae (FNMA.OB) over the amount of loans the GSE is insisting that the bank repurchase is far more serious. Chris Whalen believes that BofA might be forced to place Countrywide into bankruptcy in order to avoid liability.

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General Electric Company (NYSE:GE) is said to have made an offer for Hudson City Bancorp (NASDAQ:HCBK) before it made its own deal with M&T Bank Corporation (NYSE:MTB). Motivation for such a move might have been to secure long-term financing for its GE Capital division. GE’s reliance on short-term funding could have brought ruin on the enterprise in 2008.

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