Another day, another settlement for reigning Worst Company In America runner-up Bank of America. This time, BofA has agreed to pay $315 to plaintiffs in a class-action suit over mortgage-backed investments sold by Merrill Lynch, the once-great financial institution that BofA swooped in to save when it collapsed in 2008.
From the AP:
The class action lawsuit was led by the Public Employees’ Retirement System of Mississippi pension fund. The fund claimed that the investments were backed by poor quality mortgages written by subprime lenders Countrywide Financial Corp., First Franklin Financial, and IndyMac Bancorp, a bank that failed in 2008.
The big question is whether or not this settlement will receive approval from the court.
Just last week, the same judge who has to sign off on this settlement blocked a $285 million settlement between Citigroup and the Securities & Exchange Commission because that agreement included no admission of guilt or assertion of innocence on Citi’s part. The AP reports that the BofA settlement includes similar language.
Bank of America settles mortgage suit for $315 mln [Philly.com]