WSJ | NY, Delaware AGs Allowed To Intervene In $8.5B Bank of America Settlement
Delaware AGs Allowed To Intervene In $8.5B Bank of America Settlement
NEW YORK (Dow Jones)–The federal judge presiding over the landmark $8.5 billion settlement between Bank of America Corp. (BAC) and major investors in mortgage-backed securities has allowed the state attorneys general of New York and Delaware to intervene in the case.
In a ruling dated Friday, Judge William H. Pauley agreed with the state lawmakers that the massive settlement carries implications for the nation’s financial markets, not just the investors who will be impacted by the pact.
“This action concerns far more than the financial interests of a few sophisticated investors,” Pauley wrote. “And the intervention of the State AGs in this action will protect the interests of absent investors.”
Bank of New York Mellon Corp. (BK), which as the trustee for the investors settled on behalf of the investors with Bank of America, had looked to keep the lawmakers out of the settlement by arguing the public had no role in the pact. It is the latest ruling against the bank’s opinions by Pauley.