Fight Over $8.5B BofA MBS Deal Moved To Federal Court

Law360, New York (October 19, 2011, 10:21 PM EDT) -- A judge on Wednesday ruled a dispute over the fairness of Bank of America Corp.'s $8.5 billion settlement with holders of Countrywide Financial Corp. mortgage-backed securities should proceed in New York federal court because it centers on national interests in financial market integrity.

U.S. District Judge William H. Pauley III granted intervenor Walnut Place LLC's request to pull the settlement out of New York state court, dismissing settlement trustee Bank of New York Mellon Corp.'s attempt to "dispose of billions of dollars in toxic mortgage claims...
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