BofA Agrees To $8.5B Settlement Over Soured Mortgages

Law360, New York (June 29, 2011, 12:01 PM EDT) -- Bank of America Corp. agreed Wednesday in New York state court to pay $8.5 billion to resolve claims brought by holders of Countrywide Financial Corp. securities backed by subprime mortgages that went bust as the housing bubble burst.

Bank of America, which purchased Countrywide in January 2008, entered into the agreement with Bank of New York Mellon Corp., the trustee for 530 trusts with original principal balance of $424 billion. Among the 22 institutional investors that were pushing Bank of America to buy back the securities...
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