Bank of America appears to be renegging on its vows to engage in “day-to-day, hand-to-hand combat” with its clients over so-called putbacks of allegedly faulty mortgage securities. The Wall Street Journal reports that rather than engage in legal jiu jitsu with heavy hitters like BlackRock, Pimco and Freddie Mac, Bank of America is looking to settle the mortgage claims.
So is Bank of America CEO and rugby tough guy Brian Moynihan backing out of this particular schoolyard brawl? Not so, according to a BofA spokesperson:
Bank spokesman James Mahoney said the decision to engage in talks with the investor group isn’t inconsistent with Mr. Moynihan’s previous approach.
“Our strategy hasn’t changed,” he said. “For both Bank of America and the investors, resolving these issues quickly is in everybody’s interest. Whether resolution comes through a protracted process or it can be expedited, time will tell.”
Whether or not the strategy has changed, the tone of the posturing sure has — from hand-to-hand combat to expedited resolution. Not exactly the blockbuster we were hoping for.
mtaylor [at] observer.com | @mbrookstaylor