Bank of America legacy mortgage risk exposure is estimated to range from $12 billion to $32 billion, according to Citigroup analysts.  Citi believes BofA's litigation exposure is vast and very complex, which led Citi to lower its 2012 earnings estimate for BofA to 50¢ from 75¢ and its 2013 earnings estimate to 90¢ from $1.20.  Citi also cut its price target for BAC shares by $1 to $8.  Nevertheless, Citi says BAC shares are a "Buy", largely because Citigroup believes that BofA remains on target for its goal of 6.75%-7.00% Tier 1 common by year end. So, What's a 'Legacy Asset'. According to Investopedia, a Legacy Asset is one that has been on the company's books for a long period of time.  This type of asset has generally decreased in value to the point of a loss for the company.  The term comes from the literal meaning of outdate or obsolete. While these assets are generally considered a hinderance, it may be a good time to take another look at them in times of economic downturn.  It's is possible that they may have new value in a different time or economy. Conversely, it may also be a good time to sell the assets at a reduced price, simply to earn enough money to remain afloat during a recession.  [Flyonthewall.com, 1/6/12]