(MoneyNews.com) “This was a relatively cheap resolution for the banks,” said Simon, the mortgage
head at Pimco, which runs the world’s largest bond fund. “A lot of the principal
reductions would have happened on their loans anyway, and they’re using other
people’s money to pay for a ton of this. Pension funds, 401(k)s and mutual funds
are going to pick up a lot of the load.”

Read more: Pimco:
$25 Billion Foreclosure Deal to Hit Pensions Harder Than Banks