NY Times | New York Attorney General Moves to Block Mortgage Settlement

New York Attorney General Moves to Block Mortgage Settlement


The New York attorney general is moving to block a proposed $8.5 billion settlement struck in June by Bank of New York Mellon and Bank of America over troubled loan pools issued by Countrywide. A lawsuit filed late Thursday accuses Bank of New York of fraud in its role as trustee overseeing the pools for investors.

In papers filed in New York State Supreme Court, lawyers for Eric T. Schneiderman, the attorney general, contended that Bank of New York misled investors about its conduct as overseer of the securities. The bank also breached its duties to investors by agreeing to the deal with Bank of America, according to the complaint, because the trustee is conflicted and “stands to receive direct financial benefits” as a result of the agreement.

Questioning the fairness of the deal, the attorney general’s lawsuit said that it could “compromise investors’ claims in exchange for a payment representing a fraction of the losses” that have been suffered by investors.

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Schneiderman Exhibit Document

5 Responses to “NY Times | New York Attorney General Moves to Block Mortgage Settlement”
  1. Ali says:

    Isn’t there a disclaimer on trades on the stck market for investors? I used to work on the Board of Trade and at the Merc in Chicago. Believe me the last thing they care about is the paperwork. I used to have to go in on Sat. to warehouse with a list of paper I had to find. My point being that if you invest in the Markets, thats on you if it fails. My 2nd point being on this one is that they don’t give a shit about the paperwork. Never did. Most investors want to remain anon for tax reasons and hiding money for thier mistress’ and wifes in case they find out about the mistress.

    • lvent says:

      Yes…in reality they are just a cabal of donut eating douchebags…wasting space and devising more new and insidious ways to steal our wealth!

  2. Fury says:

    the biggest losses have been suffered by the DEFRAUDED HOMEOWNERS!
    do not forget about us!

  3. Yeah Yeah Yeah We need more attorney generals like Rob McKenna, The massashuettes AG and this Attorney Genera.. Rob McKenna from WA stated there are six Attprmey Generals that are filling law suits soon against the big banks. He is one of them. He just filed a law suit against RECONTRUST IN WA, THAT DID THE SAME EXACT CRIMES DEUTSCHE BANK HAS DONE, with one exception Deutsche is not an entity of Chase, Where RECONTRUST is a branch of Bank of America. Everyother cause of action is exactly the same. He is requestig RECONTRUST is banned from WA and all the illegally (which is all of them) properties are given back to the homeowner. Sad he held a press conference and our media here is so bought. The only coverage was a private video on the internet. No press showed up. We are in such a bought corrupt state. Actions like this one will put an end to this corruption. Yeah for Rob McKenna. He is about to file on all the big banks. YES! YEAH,

  4. Ron Moss says:

    One down, Deutsche to go.

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