Bank of America Settles Mortgage-Back Securities Case with Public Fund

Settlements are worthless if based on future payments… As BofA is slated for top pick for break-up by both parties.

Justice League

The bank has agreed to pay $335 million to settle a lawsuit brought by the Pennsylvania Public School Employees’ Retirement System.

The U.S. District Court for the Southern District of New York has preliminarily approved a settlement of a lawsuit brought by Pennsylvania Public School Employees’ Retirement System against Bank of America over the bank’s mortgage-back securities program.

The lawsuit, originally filed in 2011, claims the defendant violated federal securities law by allegedly misrepresenting and concealing the magnitude of the bank’s potential exposure to demands to repurchase mortgage-backed securities that had been sold by Bank of America and Countrywide Financial Corporation, and about alleged risks to the Bank arising from its use of and reliance on a national database that tracks changes in mortgage servicing rights and beneficial ownership interest in loans secured by residential real estate. The lawsuit claims the misrepresentations caused Bank of America stock to trade at…

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One thought on “Bank of America Settles Mortgage-Back Securities Case with Public Fund

  1. “and about alleged risks to the Bank arising from its use of and reliance on a national database that tracks changes in mortgage servicing rights and beneficial ownership interest in loans secured by residential real estate.” Oh, yeah, they must mean those strictly voluntary entries made (well, some of them might’ve been!) by members with zero oversight or accounting. How could that possibly pose risk?!

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