Bank of America is expecting to eat $20 billion in losses stemming from the bank's dealings in the subprime mortgage crisis several years ago. Investment firms, who bought portions of debt based on a raft of dubious mortgages thanks in part to BOA's acquisition of shady lender Countrywide, had demanded reparations after the bubble burst. Last fall, CEO Brian Moynihan challenged the investors' attitude of, "I bought a Chevy Vega but I want it to be a Mercedes," and told shareholders that he was going to "protect" them and engage the investors in "hand-to-hand combat." Sure, BOA might have lost $20 billion, but you shoulda seen BlackRock Financial's shiner! more ›

After getting sued for "alleged misstatements and omissions about its lending policies and procedures," Countrywide Financial and its auditor have agreed to settle the class-action lawsuit. The lead plaintiffs were the NY State Common Retirement Fund and five NYC pensions; NY State lost over $10 million and the city funds lost about $5 million. The Daily News reports that the state and city won't get all of it back, but City Comptroller John Liu Liu said, "Right now, without the settlement, we get nothing. So even if we get a couple of million dollars back, we're ahead." Countrywide said it "denies all allegations of wrongdoing and any liability under the federal securities laws. Countrywide agreed to this settlement to avoid the additional expense and uncertainty associated with continued litigation of plaintiffs' claims and Countrywide's defenses." more ›

Last week, it was reported that developer Donald Trump was going to buy TV personality Ed McMahon's home out of foreclosure, allowing McMahon to continue to live in it while paying rent. But now it turns out there's some competition for the $4.6 million mansion, with a second anonymous buyer emerging. Trump said, "I hope they take good care of Ed McMahon because he deserves it. The only reason anybody other than me would be interested in this house is because I showed an interest in it first. I just heard that the person negotiating doesn't have financing, and the deal would be subject to getting financing, something which I, obviously, don't need." McMahon had a $4.8 million mortgage out on the property from Countrywide, which said the 85-year-old was $644,000 behind on payments in February. more ›