$8.5B BofA Deal Lowballed, Self-Serving, Investors Argue

Law360, New York (June 4, 2013, 6:16 PM EDT) -- The $8.5 billion mortgage-backed securities settlement that Bank of America Corp. essentially forced upon 22 institutional investors shortchanged other investors and gave the securities' trustee, Bank of New York Mellon Corp., a get-out-of-jail-free card, objectors including American International Group Inc. said during a trial Tuesday.

AIG's Daniel Reilly of Reilly Pozner LLP argued that the court should throw out the settlement, which 22 institutional investors including PIMCO, BlackRock Inc. and the Federal Reserve Bank of New York negotiated with Bank of America and the trustee over...
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