The Wall Street Journal's Editorial staff says that federal and state regulators seem to have forgotten how they cheered BofA when it agreed to acquire the troubled mortgage lender (Countrywide) in the midst of the financial panic. 

The alternative, the WSJournal continues, was letting Countrywide fail, triggering more panic, or a taxpayer bailout.  Now the federal seers seem intent on using the Countrywide deal as leverage to force the bank to eat the costs of the Obama Administration's foreclosure-prevention policies. 

Funny, but some of us on Wall Street thought that former Bank of America CEO Ken Lewis had visions of grandeur and simply "bit off more than he could chew" on his way to creating the largest and most renowned bank on the planet.  

In this day and age, announcements of multi-billion bank settlements seem to occur with such frequency that citizens are now desensitized to these astronomical numbers.  Why, therefore, should state regulators like the New York state attorney general be vilified in The Wall Street Journal, which labels him as "Schneiderman Short," and accuses Eric Schneiderman of being "so eager to keep plundering the financial industry that he's making the other politicians driving the robo-signing cases look moderate."

Bank of America agreed to pay $8.5 billion in final settlement of mortgage holders claims - the same individuals who allegedly were cheated out of more than $100 billion.  As we understand it, Mr. Schneiderman is questioning the final figure as well as the right of New York state and others to seek further redress as warranted. If he's got solid evidence to support his position, then allow him to proceed.  Otherwise, cease with the name calling and cheap words.   [WSJournal, 8/26/11]