Bad mortgages to cost banks

The top US banks could face up to $31bn (£19.1bn) in losses from buying back bad mortgages, Standard & Poor's said in a report yesterday. Large US banks are facing pressure to buy back soured home loans that they packaged into mortgage bonds and sold to investors. The six most exposed firms, including Bank of America and JP Morgan, could face up to $43bn in total losses from mortgage buybacks through 2012, but they have already accounted for about $12.4bn of those potential losses, according to S&P.