BofA’s $8.5 Billion Settlement Could Fall Apart After Request Made To Move Mortgage Case From State To Federal Court

BofA’s $8.5 Billion Settlement Could Fall Apart After Request Made To Move Mortgage Case From State To Federal Court

As most know by now, the ridiculously low $8.5 billion putback settlement, which was supposed to have been closed by now, and which was the key driver in preventing Bank of America from trading far, far lower (and requiring much more capital), is the wildcard that would allow the bank to package tens if not hundreds of billions of claims against the bank in a “tidy (and very small) little package.” The key factor allowing this settlement to be structured in its existing form, was that the lawsuit was filed in New York State Court, which allows for a little something known as Article 77, or a provision permitting “special proceeding related to express trust.” The details are provided below, but in essence boil down to the following: the settlement in its current form can only be enacted if the lawsuit is conducted under New York State law. Well, minutes ago, David Grais, attorney for Walnut Place, which as we have repeatedly observed represents those interests who claim the $8.5 billion settlement is massively insufficient and are engaged in litigation seeking far greater recoveries, filed a request to transfer the lawsuit from State Court to Federal Court where everything basically begins a new. More than anything, this latest development may explain why Bank of America has been scrambling to raise tens of billions in the open market as an adverse court decision, one granting Grais’ request, means the bank is suddenly open to unlimited downside capital risk. In the meantime, add major litigation headline risk to everything else that BAC has going for it…

Manal Mehta explains why this could be a gamechanger:

If this happens, basically renders the Article 77 irrelevant. Article 77 is a New York Statute.  Bank of America wanted to use Article 77 to make the settlement binding upon all 530 trusts including those who objected to the settlement.  Class action in Federal Court allows parties to opt out of the settlement.

Check out the rest here…

Latest court filing below…

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4closureFraud.org

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BOFA Supreme Court Removal

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Comments
13 Responses to “BofA’s $8.5 Billion Settlement Could Fall Apart After Request Made To Move Mortgage Case From State To Federal Court”
  1. Ali says:

    Whatdo you mean “back to fraud as usual”. They haven’t stopped! They are continuing right now, today, And now they want “responsible” homeowners to refince with the goverment. I wonder what they are going to call them when thier interest rates reset, or the markets crash, which they will. They just change their name’s and go on as if nothing happened. Now B of A is using Corelogic. I do not understand why people in this country are not outraged as to what has occurred. There has been no legislation that allows morgages to be gambled away on the the casino called wall street and who in the hell cares about the downgrades coming from same ratings agency’s that rated the morgages as AAA, they need to be sued too. Insurance companies paying off the same morgage multible times and the additude of the goverment, nothing to see here folks, just a bunch of deadbeats who bought homes they couldn’t afford What a bunch of shit. I’d bet that this situation has touched ereyone in the US either by it happening to them or a loved one or a friend or a co worker, if they are lucky enough to have a job. We don’t hear about it if it happens to someone who works for the gov. They make it go away. All I know as a consumer all I wanted was a 30 yr fixed rate mortgage and put enough money down to bring the pymts down to where we could afford them. We never would have gone for a morgage to be bought and sold a the casino by rich strangers. We were sick to death of landlord who don’t give a shit about the state of their property. We had three differant landlords in 5 yrs. at our last rental in Chicago, they were hiding money from the courts in the event of divirce or tax evasion. Reallly? This is so much better.

  2. housemanrob says:

    DON’T COUNT THE CHICKENS BEFORE THEY HATCH!

    • lvent says:

      THE POLITICIANS ARE ALL ABOUT, THE MONEY AND THE GREED, THE GREED AND THE MONEY……..AND OUR ENEMIES KNOW THAT…….LIKE THE SAYING GOES EVERYONE HAS A PRICE…

      • lvent says:

        The only way to stop them is for WE THE PEOPLE TO _INDIVISIBLY_ EXERT OUR CONSTITUTIONAL RIGHTS………………………………AND DEMAND CONGRESS COIN AND ISSUE THE CURRENCY BACKED BY SILVER OR GOLD…….WITH THE INTEREST MADE OFF OF THAT THE ISSUANCE OF OUR OWN CURRENCY, AMERICA COULD PAY OFF ITS FRAUDULENTLY INDUCED DEBT IN SHORT ORDER…THERE IS NO POLITICAL WILL TO FIX THIS BECA– USE THE POLITICIANS ARE COMPLETELY CORRUPT AND — USELESS….WE THE PEOPLE MUST DEMAND OUR CONSTITUTIONAL RIGHTS BE UPHELD……!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
        THE WHOLE COUNTRY NEEDS TO MARCH ON WASHINGTON!!!!! NO EXC– USES, OUR NATIONAL SOVEREIGNTY IS WHAT IS AT STAKE HERE IF WE DO NOT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

      • lvent says:

        WALL STREET IS EVIL, BUT IT IS A R– USE, DISTRACTION FROM THE HEAD OF THE BEAST, THE WORLD BANK!!!!!! THE FEDERAL RESERVE IS A MONEY COUNTERFEITING OPERATION AND SHOULD BE PROSECUTED UNDER RICO AND THE BANKS ARE LAUNDERING DRUG MONEY, AND PASSING COUNTERFEIT BILLS TO THE WORLD…… ALL FEDERAL CRIMES!!!!!!!!!!!!!…………………………………….THEY ARE AN ONGOING CRIMINAL ENTERPRISE CONDUCTING CRIMINAL RACKETEERING OPERATIONS WORLD WIDE…..!!!!!!! The head of the beast is the WORLD BANK………THE NEW WORLD HORDER OWNED BY THE VATICAN…..THEY OWN ALL CENTRAL BANKS AND THE FEDERAL RESERVE BANK………………..THESE SMOOTH AND SNEAKY CRIMINALS DISGUISED AS AMERICAN INSTITUTIONS ARE NOT AMERICAN OWNED AND ARE MAKING A LAUGHING STOCK OUT OF AMERICA AND THE WORLD AND RANG US UP WITH 40 TRILLION IN FRAUDULENTLY INDUCED DEBT……………!!!!!!!!!!!!!!!!!!

  3. Jim Bethea says:

    Fear Not: Deutsche Bank is right behind in suing B of Am for knowingly and willfully selling them accounts that B of Am were no good ~~

    I would like to see a blanket federal subpeona of all visits ~ emails ~ phone logs & a list of visits to the White House from any intermediaries of the banksters or their attorneys ???

    I believe [as Ricky told Lucy ~ “you got some plaining to do”] ~ this could be done under a petition of fraud discovery ~ and if it is found that their have been unethical secret communications in favor of the banksters from the White House or any part there of ~ then this would be proper grounds for impeachment

    • lvent says:

      I think Jon Stewart puts this well, this is the CLUSTERF#@CK TO THE POOR HO– USE….They are all the pot calling the kettle black and they all have the same owners……it is a big show they are all putting on….BURN BABY BURN…….These are not American owned banks and NO ONE SHOULD give a F–ck about them or the corrupt treasonist politicians and all of their minions and cohorts who are trying to save their asses…..WE THE PEOPLE MUST MARCH ON WASHINGTON AND DEMAND THE CONGRESS GOVERN UNDER THE LAWS OF THE U.S. CONSTITUTION AND THE U.S. ISSUES ITS OWN CURRENCY BACKED BY GOLD OR SILVER….. I am going to try and post this George Carlin you tube video. Pass it on..George had it right…..
      George Carlin-The American Dream:
      http://www.youtube.com/watch?v=hYICOeZVEtI

  4. pamelag says:

    Obama does not want these gang banksters to be put out of business. he really is concerned about their not being found guilty of wrong doing. geithner gave these gang banksters $16 trillion!!!! GAVE them $16 trillion.!!! where are they puttin all this $?? and they are still stealing peoples homes. now, why dint geithner get something in return ?or did he?

  5. Hell No, No More Bail-OUTS says:

    Beautiful.. This will also help take some pressure off of NY AG Schneiderman. This suit is likely to be joined by other members of the 530 different trusts that were not happy about the poo that BNYM and BofA had cooked up and doled out.

  6. lvent says:

    Woo Hoo!! It is about time!!! Someone has to do something to stop these thieves!!! There are plenty of brilliant lawyers in this country to put a stop to their evil plans……..may all of their evil foreclosuregate plans fail!!! We can’t let them get away with this America!

  7. Jim Bethea says:

    YES ~ Carry these crooks that run their scams from behind their protective curtain in the Land of Oz [protected by Congress who failed to enforece actions against their fraud and handed out “Bailout Money” to them] ~ The Federal Court would make them exempt from this “slap on the wrist treatment” and put them in the eyes of the taxpayers who’s money has been used to prop them up!

    There should be no so-called protection as “Too Big To Fail” for anyone, any bank or any corporation. If the crooks in Washington had been doing their own jobs in the first place, then this would not be any issue that can become very prevelant and pervasive, as it should be evidenced.

    Bank of America is one of the worst banks in America for extorting money from their unsuspecting customers. An independent auditing and full courtroom discovery, I feel sure, will paint them for what they truly are; a bunch of evil, sinister thieves who derive grand fortunes for their European stockholders and the masterminded criminals who set their fraudulent standards of operation.

    HELL NO TO SETTLEMENTS either state or federal and let them be tried in an unbiased court of law [before a jury] like you and I would have to endure it we were criminals such as these. If it is ruled that they are what I think they are; then let them pay the price the jury sets upon them. If B of Am cannot or does not have the funds to pay, then lock them down with a judgment and an injunction to lose their private jets, the out of control executive benefit plans & bonuses and most of all their domestic and international banking licenses. Furthermore issue an order clearly defining the pertinent details that no one that has served in the top executive positions or members of the board of directors could ever reassemble or be enjoined in their present capacity with any other banking industry within the boundries of the US. Also inclusive of other US affliated banking territories including but not limited to the US Virgin Islands, Guam, Puerto Rica & the Phillipines.

    DO THE CRIME ~ DO THE TIME [not pay some ridiculously small fine and back to fraud as usual]

    • Katheryn says:

      But don’t forget – they still have the extra “somewhere” to pay out those nice bonuses. Blatant laugh in our faces – THEIVES

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