In the Bank of America/Bank of New York Mellon settlement with investors on mortgage-backed securities deficiencies, it appeared the banks were getting the upper hand with a friendly state judge, and some of the objections to the settlement from outside investors were struck down. But that all ended yesterday, when a US District Court judge allowed one lawsuit against Mellon to go forward in federal court, opening a new path.
|By: David Dayen Wednesday April 4, 2012 8:50 am|
|By: David Dayen Thursday October 20, 2011 5:40 pm|
In a major setback for Bank of America, a federal judge has moved the venue for their $8.5 billion settlement with investors on mortgage-backed securities issues to federal court. In so doing, the judge criticized the arrangement on a variety of fronts.
BofA hoped to do away with all of their investor liability on Countrywide MBS in one fell swoop with the settlement, negotiated with only a small sliver of institutional investors through the trustee, Bank of New York Mellon. Other investors, as well as the Attorneys General of New York and Delaware, criticized the deal and took BofA and BNYM to court over it. Keep in mind that the $8.5 billion settlement represented around 2-3 cents on the dollar for the total pool of mortgage securities affected.
|By: David Dayen Sunday August 14, 2011 7:00 pm|
I could barely suppress a laugh when reading about Bank of America CEO Brian Moynihan begging Tim Geithner to settle the foreclosure fraud issue so they can get out from under their liability. As Yves Smith points out, if Tim Geithner had the power to get Bank of America out of their mess, he surely would have done it by now, before their stock dipped 36% in the last three weeks. Geithner simply doesn’t have jurisdiction.
|By: David Dayen Wednesday August 10, 2011 7:59 am|
Yves Smith has liberated Beau Biden’s brief to a New York court asking for intervention in the Bank of America mortgage settlement. She finds Delaware Attorney General Biden talking along the same lines as New York AG Eric Schneiderman. Biden’s main objection is that he “does not have sufficient information to evaluate the reasonableness of the proposal.” But he goes further to say that his preliminary investigation into the mortgage backed securities business of the midd-2000s has turned up some problems.
|By: David Dayen Monday August 8, 2011 2:30 pm|
Bank of America was just getting over having the New York Attorney General step in on their settlement with Countrywide investors over mortgage bonds, when Delaware’s AG decided to join in.
|By: David Dayen Thursday August 4, 2011 5:23 pm|
New York Attorney General Eric Schneiderman has filed a motion to intervene in the $8.5 billion settlement between Bank of America and mortgage backed securities investors, calling the proposed settlement “unfair and inadequate,” and seeking to represent those investors who would be unrepresented at court but bound by the judgment. In addition, Schneiderman alleges “fraudulent and deceptive conduct” on the part of Bank of New York Mellon, the trustee in the case.
|By: David Dayen Wednesday July 13, 2011 8:30 am|
After trying to pull a fast one on their Mortgage Backed Securities, Bank of American and Bank of New York Mellon are having the breaks slammed on their $0.05 on the dollar settlement. There is some reason to hope this will actually expose more of the tangled web of deceit that these banks have tried to hide.