Bank of America reaches $500 million settlement with investors

Clears concerns over Countrywide mortgages

Bank of America has received final approval on a $500 million dollar settlement with investors claiming they were solid junk mortgage-backed securities in the run up to the financial crisis. The settlement was reached by the unit within the bank responsible for overseeing the investments taken on with its purchase of Countrywide mortgage lenders.

“An immediate cash payout that avoids the risks and expenses associated with bankruptcy, protracted litigation, appellate review, and several legal challenges militates in favor of final approval,” said U.S. District Judge Mariana Pfaelzer in her ruling on Dec. 9. She tentatively approved the deal earlier, reports Bloomberg.

Executive Editor

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Chris DiMarco

Chris DiMarco, Executive Editor of InsideCounsel magazine, has a background in multimedia production with previous involvement in projects in which he developed and created content...

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