8/20/2010

JPMorgan Chase, Bank of America, Wells Fargo and Citigroup have already taken $9.8 billion in losses on loans they have repurchased or expect to be required to repurchase, and some analysts think that number will eventually be much higher. In the second quarter alone, Wells Fargo repurchased $530 million of mortgage loans that it estimated were worth slightly less than half their face value on average. Most of the money the banks have paid so has gone to Fannie Mae and Freddie Mac.

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