Bank Of America $8.5B Mortgage Settlement Case Opens
Bank of America Corp’s proposed $8.5 billion settlement with investors over mortgage securities that went bad during the financial crisis offers billions more than they are likely to get if they go to trial, a lawyer for the trustee testified Tuesday.
Bank of America agreed to the settlement in June 2011 to resolve claims against mortgage lender Countrywide Financial Corp, which BofA bought in 2008. Twenty-two institutional investors entered into the settlement.
The case is In re: Bank of New York Mellon, New York State Supreme Court, New York County No. 651786/2011.