In this week the banking institutions of the US like Bank of America, Wells Fargo & Co. and Citigroup will be reporting their earnings. They have to answer questions raised by investors regarding wrong foreclosures of documents leading to selling of stocks of US bank.

All these banks along with JP Morgan Chase and Co have lost forty nine decimal three billion dollars in the market during a three days time that ended on 15 October 2010. The result cropped up from worries that the increasing costs of early foreclosure can consume the net profits.

A sum of two decimal three billion dollars has been kept aside by JP Morgan to cover up the payments for repurchasing of mortgages and Expenses of litigation along side of covering up expenses of some mortgage related matters as stated by the bank on 13, October.

Erik Oja, an equity analyst, working in Standard and Poors new York Office stated that they received two banks reports of good earnings if credit-quality costs reducing is taken into account.

The banks she meant are First Horizon National Corp and JP Morgan & Chase. She added saying that people are not bothered, as they are asking that how many foreclosures the banks are having in their pipelines.

There had been investigation carried out in all the fifty states of the US regarding foreclosures. The matter has raised concerns that banks might have to buy billions of dollars in loans from investors of mortgage bonds who will challenge the documents of the foreclosures.

Many banks had kept on hold the process of foreclosures all over the US to review the documents and paperwork as the court documents which got released showed that employees of many mortgage firms have signed documents without even judging the authenticity.