Bank of America’s $8.5 billion settlement with holders in soured mortgage-backed securities is being challenged by a group of bondholders, Reuters reports. The group, which calls itself Walnut Place, has called the settlement with 22 institutional investors, including BlackRock, MetLife and Allianz, inadequate.
The North Carolina-based bank had agreed to pay $8.5 billion to settle claims by a group which lost money on mortgage-backed securities that were purchased from BofA’s unit Countrywide Financial. The settlement also requires the lender to improve its servicing operations.
Click here for the story from Reuters.
Click here for additional coverage from The Wall Street Journal.