Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Win For Bank Of America As $8.5 Bln Settlement Moved Back To NY State Court

RELATED NEWS
Trade BAC now with 

Bank of America Corp. (BAC: Quote) and a group of investors scored a victory Monday in getting their proposed $8.5 billion mortgage-bond settlement case transferred from a U.S. Appeals court to the New York state court where it was first filed.

The bank had filed the settlement in New York State Supreme Court last year to resolve claims from the group of institutional investors, including BlackRock Inc. (BLK: Quote), over losses they took on mortgage bonds.

The U.S. Court of Appeals in Manhattan ruled Monday that the bank's proposed settlement with the investor group in mortgage bonds of Countrywide Financial Corp., which Bank of America bought in 2008, should be reviewed in the state court, not federal court.

The case was initially set for consideration at a November 2011 hearing, but before that, it was moved to federal court by a group of bond investors under the name Walnut Place. Those investors alleged that the bank reached a backroom deal with big investors but left out thousands of others.

The latest ruling comes after Bank of New York Mellon Corp. (BK: Quote), the mortgage bond trustee and the party that actually settled with Bank of America, argued the case should remain in a state court.

The appeals court now overturned a lower court ruling, noting that "the case was not removable from state court and must be remanded."

Bank of America shares closed Monday's trading at $8.04, up $0.16 or 2.03 percent.

Register
To receive FREE breaking news email alerts for Bank of America Corporation and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Global consumer confidence increased in the second quarter to reach the highest levels since the first quarter in 2007 as job optimism improved, results of a survey by Nielsen showed Tuesday. The Nielsen Global Consumer Confidence Index rose a point from the previous quarter to 97 in the second quarter.... Texas Instruments Inc., the world's largest maker of analog chips, said Monday after the markets closed that its second quarter profit rose 3% from last year, as revenue increased 8%. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue. At the same time, the company gave an upbeat outlook for the third quarter. After coming under pressure in early trading on Monday, stocks regained some ground over the course of the trading session but still closed modestly lower. The pullback on the day partly offset the strength that was seen last week.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.