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Bank shares lead Wall Street fall

October 20, 2010

Everyone makes mistakes but people who are highly paid because of their skills should make fewer mistakes. Right?

Bankers are responsible for huge amounts of other people’s money, so they should be extra careful. That’s why they get paid so much in salary and bonuses. Right?

Having messed up the US and World economies so much recently, bank management will have seen big shake-ups to make sure such monumental errors could never occur again. Right?

Wrong.

“A group of investors is reported to have accused Bank of America of inappropriately bundling some mortgages into $16.5bn (£10.5bn) of bonds.

Bloomberg News said that money management firm BlackRock, bond investment fund Pimco and the New York Federal Reserve were among the investors, who want to force the bank to repurchase $47bn in mortgage bonds.”

Forty seven billion dollars !!! Where will the money come from? Bank salaries, bonuses and interest payments to investors or out of your pockets?

Read the full story: here

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