WFC, BAC and Other Banks Continue to Fight Lawsuits

Banks continue to face the ghosts of mortgage related issues, as judged from SEC filings that require a bank to disclose the potential litigation losses that may exceed its legal reserves. Wells Fargo & Company (NYSE:WFC)’s latest quarterly filing reveals that “reasonably possible potential litigation losses” that were in excess of the legal reserves were $1.2 billion, higher by 30 percent over the previous quarter.  Wells Fargo is also facing legal claims, on account of mortgages it had sold to investors, but which it is taking back, following default by the borrowers. These claims, it disclosed Tuesday, could exceed its…