Schneiderman questions $8.5B BoA deal
NEW YORK (Legal Newsline) - New York Attorney General Eric Schneiderman, as part of his own ongoing investigation into the mortgage industry, now is questioning an $8.5 billion deal between Bank of America and more than a dozen investment firms.
According to the New York Times, Schneiderman may intervene to challenge the settlement, which covers 530 mortgage pools issued by Countrywide Financial. Bank of America bought Countrywide in 2008.
According to the Times, the 22 investment firms held interests in only about one-quarter of those pools.
Also, under the settlement, investors who don't like the terms are not allowed to opt out and bring suits against Bank of America, the Times reported.
The attorney general, according to letters sent to the firms, is concerned the deal was made without the full participation of those affected investors.
Schneiderman's request is reportedly part of his own comprehensive investigation into the mortgage industry.
In May, he sought records from Bank of America and two other Wall Street banking giants, Morgan Stanley and Goldman Sachs.
Last month, he also requested documents from a handful of financial institutions -- including Bank of New York Mellon Corp. and Deutsche Bank AG -- that act as trustees for mortgage bond trusts.
According to the Times, a final court hearing to certify the settlement is scheduled for November.
From Legal Newsline: Reach Jessica Karmasek by e-mail at email@example.com.
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