Those noises by large investment firms including Pimco about trying to force Bank of America to buy back mortgage-backed securities, which we covered here earlier in a post on CNBC's Non-Lawsuit Lawsuit, are meeting some stiff resistance from Bank of America.
A letter from Bank of America accuses the letter written by a lawyer agitating against B of A, Kathy Patrick, of being "written for an improper purpose, or in furtherance of an ulterior agenda," reports the New York Times.
Bank of America's lawyers on the issue include Theodore Mirvis of Wachtell, Lipton, Rosen & Katz; Brian Pastuszenski of Goodwin, Procter; and Marc Dworsky of Munger, Tolles & Olson, Bloomberg News reports. Bloomberg reports the letter asks Ms. Patrick for the names of the individuals who authorized her to act on behalf of the holders of the mortgage-backed securities, and also asks whether the boards of directors of the securities holders approved her letter.
Neither the Times or the Bloomberg article get into what the "improper purpose" or "ulterior agenda" is.
Yves Smith at Naked Capitalism notes "this forceful retort received no where near the attention that the release of the initial letter did." That post goes on, "it appears likely that the letter is challenging whether Patrick and the New York Fed's asset manager Blackrock, went through the proper steps to get approval from the New York Fed....it appears likely that the Fed inclusions was essential for at least some, perhaps a large portion, for the joint investor holdings in those 115 trusts to reach the 25% level."
