And as much as I hate to kick a $23 billion hedgefund when they are down, here goes.
Bank of America Corp. yesterday won dismissal of a lawsuit by investors who wanted the bank to buy back mortgage loans that underlie more than $1.06 billion of securities.
The case is tied to risky home loans issued by Countrywide Financial Corp, which Bank of America bought in 2008. The suit was brought by Walnut Place, a name used by the Baupost Group, a Boston-based hedge fund run by money manager Seth Klarman.http://www.bankerandtradesman.com/news149335.html
And reminiscent of the way they set up a front company in their endeavours here called Highlands, they did the same thing in this lawsuit and until they were finally caught out, kept up the usual corporate mantra, deny, deny, deny
Late Friday, Baupost informed its partners (as the fund calls clients) that it is indeed Walnut Place. But according to a source who disclosed the memo's content to Reuters, the hedge fund said it is litigating to protect its clients' investment -- and not, as a blog suggested Thursday night, because it has shorted Bank of America stock.
What is mostly surprising about this is why in the hell would Baupost ONLY sue for $1 billion? Did Seth run out of pocket change?