BofA Goes to Trial Over ‘Worst of the Worst’ 2008 Subprime Loans

Ambac lawyer Michael Carlinsky said of Countrywide. “It didn’t care about the quality of those mortgage loans because it was passing the risk on to others.”
Bank of America acquired Countrywide and continued the Countrywide's practice.

Fast forward to today... Bank of America is offering:
0% down, no credit check mortgages.

Deja-Vu!

“It didn’t care about the quality of those mortgage loans because it was passing the risk on to others.”

LOL, the "others" didn't do their due diligence in assessing the underlying risk of those low-grade packaged loans... all they "saw" was the high interest that Countrywide was offering to offset the risk...

“What did Ambac know about these loans? The answer is, from the get-go, everyone, including Ambac, knew the loans in these securitizations had significant payment risks,” Enu Mainigi, a lawyer for Countrywide, said in opening statements.
“They were rated by the ratings guys as junk or near-junk,” she said. “This was known to everybody before Ambac signed on these securitizations. Ambac’s role in these contracts was to be the credit enhancer – to make it less risky to the investors because Ambac was standing behind it with its insurance.”

So in other words, Ambac saw that there was big $$ to be made by insuring these loans even though they knew of the underlying risk, but they STILL CHOSE to do so.

This is like the trader who places a 100% margined trade and then after he/she loses their ass complains that it's the brokers fault to allow the trade to be made in the first place. For Fu*#king pete's sake, what ever happened to personal responsibility???

So what? NOBODY has to buy these risky securities. If BoA wasn't able to easily offload these risky loans to investors, then they wouldn't be offering them.