Bank of America closing on $8.5 billion settlement

Payment to satisfy investors’ claims regarding loss of money on mortgage-backed securities

Dominoes from the U.S. housing collapse continue to fall. Coming just a week after reports surfaced that Bank of America Corp. (BofA) faced lawsuits from union and public employee retirement funds due to losses on mortgage-backed securities, BofA yesterday announced it has agreed to pay $8.5 billion to settle claims from investors that lost money on mortgage-backed securities.

A group of 22 investors, including MetLife Inc., Federal Reserve Bank of New York and BlackRock Inc., originally had bought mortgage-backed securities valued at $105 billion before the U.S. housing market burst.

Join the Conversation

Advertisement. Closing in 15 seconds.