Bank of America - The $8.5bn Decision Nears


There's a lot riding on it.

Bank of America’s $8.5bn settlement with mortgage-bond investors is set to be considered by a New York court two years after the lender struck the deal to resolve claims over home loans bundled into securities.

Bloomberg reports that the settlement, scheduled to be considered by Justice Barbara Kapnick in State Supreme Court in Manhattan starting Monday, is part of an effort by CEO Brian Moynihan to clear up liabilities tied to the purchase of home lender Countrywide Financial in 2008.

Although the deal has the backing of an investor group that includes BlackRock, it must overcome opposition from investors led by American International Group who argue Bank of America isn’t paying enough.

'The settlement is the centerpiece of the strategy to resolving Countrywide’s mortgage liability', said Isaac Gradman, a mortgage-finance litigator at Perry, Johnson, Anderson, Miller & Moskowitz LLP in Santa Rosa, California. 'It’s imperative they get this approved or there’s going to be a lot more pain down the road'.

The agreement, which has gone through two years of litigation since it was filed in court in June 2011, was scheduled to be considered at a May 30 hearing and could face another postponement. An attorney for AIG said in a May 31 letter to the court that opponents didn’t have all the evidence they need to present their case.

Hit the link below to access the complete Bloomberg article:

BofA $8 Billion Mortgage Deal Before Judge After 2 Years

SAC Insiders Said to See Most Client Cash Gone by 2014

Scotiabank CEO Waugh to Retire as Porter Named Successor

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News