Banks Are Tanking After Massachusetts Supreme Court Voids Foreclosures
Jan. 7, 2011
One step forward, one step back.
The Massachusetts Supreme Court just dealt a negative ruling to the banks in the closely-followed Ibanez case, which challenged securitization standards. It’s pretty straightforward: The banks didn’t have the proper paperwork to foreclose, says the court. Hence, no legitimate foreclosure.
Tracy Alloway at FT has a good overview of what was at stake here, but essentially it comes to question of whether banks have standing to foreclosure.
We’ll post the ruling as it gets out.
Shares of Bank of America, Wells Fargo, and USB had been higher, but are now lower in the span of a few minutes.
Wells Fargo is down nearly 2.4%.