The WSJournal's Dan Fitzpatrick reminds us that, last fall, Bank of America promised “hand to hand combat” against investors payback claims.  Yet, by agreeing to settle with unhappy mortgage-security investors, Bank of America will fork over more than all of its profits since the start of the financial crisis. Did someone say "capitulation?"

Whatever one calls it, the settlement is quite a turnaround for the Charlotte, N.C., banking giant.

WSJ's Deal Journal offers this timeline of BofA’s changing tune on the so called “putback” demands to repurchase mortgage securities:

October 2010:  “When we look at the rep and warranty claims and the claims by the various investors, we’re not going to just put this behind us to make us feel good….. If you think about people who come back and say, ‘I bought a Chevy Vega, but I want it to be a Mercedes with a 12-cylinder,’ we’re not putting up with that. We will be very ardent to protect the shareholders’ interest….” – CEO Brian Moynihan, on BofA's earnings conference call.

November 2010:  “It is not [as though] I like the fight…. But on the other hand, I’m not going to use the money unwisely but we are working on all of them….It is a day-to-day, hand-to-hand combat goes on every day.” – Moynihan, at an investor conference

December 2010:  BofA starts settlement discussions with 17 entities - including Pimco, BlackRock and Freddie Mac - pushing for securities repurchases.  “Our strategy hasn’t changed,” a BofA spokesman told The Wall Street Journal at the time.  “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.”

January 2011:  BofA agrees to pay roughly $3 billion to compensate Fannie Mae and Freddie Mac for fizzled mortgages the government-backed agencies bought from BofA’s Countrywide unit.  The payments to Fannie and Freddie, Moynihan said, “resolve substantial legacy issues in the best interest of our shareholders.”

April 2011:  BofA discloses that it has set aside slightly less money — $6.2 billion compared to $5.4 billion 3 months earlier - to cover possible investor claims from investors holding mortgage securities.

[C-I Note:  Actually, some are calling the settlement a "kick in the teeth."]   [WSJ Deal Journal, 6/28/11]