BofA $8.5 Billion Deal Won’t Face N.Y., Delaware Objection
Bank of America Corp. (BAC)’s effort to complete an $8.5 billion settlement with mortgage-bond investors won’t face objections from New York and Delaware, which had intervened in litigation over the deal.
New York Attorney General Eric Schneiderman and Delaware Attorney General Beau Biden said they won’t seek to block it, saying investors have benefited from litigation. New York had previously said the deal represented “a tiny percentage” of investor losses.
“Our intervention in this matter helped ensure a full, thorough and transparent process,” Damien LaVera, a spokesman for Schneiderman, said today in a statement. “As a result, what remains is a commercial dispute among sophisticated parties who are well represented.”
The move comes almost two years after the settlement was filed in New York state court for approval with backing from an investor group that includes Pacific Investment Management Co. The deal, which would resolve claims from investors in Countrywide Financial mortgage bonds, is set to be considered by a judge at a hearing starting May 30. Charlotte, North Carolina- based Bank of America acquired Countrywide in 2008.