Morning financial news roundup (Yeehaw):

Assurances on Buybacks May Cost Lender
NYT | This has been a week for grand gestures....

The repurchase obligations are discussed in Countrywide’s prospectuses and pooling and servicing agreements that cover about $122 billion worth of mortgages packaged and sold to investors from early 2004 to April 1 of this year....

It is unclear how many modified loans are involved. But it would cost $1.2 billion for the company to repurchase 1 percent of the loans in the pools at issue. Repurchasing 5 percent would cost $6.1 billion. When such buybacks are made, the original amount of the loan is paid into the pool and divided among the investors.

Either a) BofA's capital calms the markets enough such that the repo obligations shrink, or b) BofA is going to have one hell of a legal bill.

More on an old item:

Four Major Banks Tap Federal Reserve for Financing
NYT | "Substantial liquidity," hurr hurr

The country’s four biggest banks announced yesterday that they had each borrowed $500 million from the Federal Reserve, taking an unusual step to ease the credit squeeze that has been rattling the financial system for weeks.

The coordinated moves were seen as largely symbolic, aimed at removing the stigma of borrowing from the discount window, which is regarded as a last resort for financial institutions. All four banks can borrow money more cheaply elsewhere, and all said they had “substantial liquidity.”

Also,

Tax Change for Private Equity Firms May Yield Little, Study Finds
IHT | Unsurprising...

Buyout and venture capital firms would restructure their affairs to sidestep new tax laws, according to the study, by Michael Knoll, a law professor at the University of Pennsylvania.

At most, lawmakers may generate $3.2 billion a year in added revenue by raising taxes on the share of profit, or so-called carried interest, that executives receive as compensation for managing funds, Knoll said in the study.

And, even more unsurprising...

K.K.R. Denies Delaying I.P.O.
Dealbook | Really? I mean, REALLY?

And, lastly, in a morning where I'm following up on basically everthing I've posted this week, I felt like I should also post something more directly in line with my previous profession...

Wall Street Bonuses May Take a Pay Cut
IHT | No s**t