June 29, 2011 – Investment News reports that Bank of America, the nation’s biggest bank, has agreed to pay $8.5B to resolve claims about soured mortgages after mortgage bondholders demanded refunds. Investors, which include Pacific Investment Management Co. and the Federal Reserve Bank of New York, demanded in October of 2010 that Bank of America repurchase home loans that had been packaged into bonds by Countrywide Financial Corp., which BofA acquired in 2008. The settlement covers 530 mortgage trusts with an original loan balance of $242 billion, the bank said.
To read the full article: BofA $85.B settlement
