This is why Bank Of America probably won't Get Crushed By Big 47 billion $ repurchase agreements as defined in Request (BAC, BLK)

Bank of America shares are getting crushed the second day in succession fears that the Bank is exposed to through the acquisition of its own mortgage billions.

And, indeed, the labels are scary--the New York Fed PIMCO (also a branch of the Federal Government!), and BlackRocks (BofA's own partly owned by the unit)--to more than 47 billion dollars mortgages back!

But the market overreacting a little.

FT Alphaville makes many good points for the news and the letter that was sent to the BofA.First of all, the acquisition of its own mortgage had been dragging on earnings for some time. [1] [2] this is not a new issue, the fact that these issues take years, and then drag it to the courts through the years, the Bank is not going to ... one day as a result, by the year 47 billion dollar bill of materials.

The fact that much of the selected material is procedural (paperwork, foreclosure processing, etc.), and is not separately sold bonds is not advertised in.

And yet, if they produce the requirement than FT Alphaville reports, some of the bonds was especially bad Mortgage loans advertised on Credit, which means that the underlying mortgages was sourness disclosure.

Line: this is not news that its surface is proposing BofA is huge problems, on the one hand, you want to always type. comply with what the market says, when its President to forward its position to continue the tank so aggressively.

For additional background of potential exposure of the company, click here >