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"It was not the bondholder group that caved," says Pimco's Kent Smith. "Bank of America (BAC)...

"It was not the bondholder group that caved," says Pimco's Kent Smith. "Bank of America (BAC) did." Smith was present at settlement talks in 2011 between BofA and the largest investors in soured MBS. Contrary to the glad-handing described by the settlement "objectors," the meetings were hostile, says Smith (testifying at the Article 77 hearing), with BofA's initial position being the grandchildren of the grandchildren of the investors would never recover a dime. The bondholder group eventually got $8.5B.
Comments (5)
  • Justice was served.
    6 Jun 2013, 03:22 PM Reply Like
  • Why is there a link to a paid site in this new story. Annoying!
    6 Jun 2013, 03:24 PM Reply Like
  • The SA blurb summed it up pretty well. The two main points in the article were that no statistical sampling would be allowed without litigating the issue(s) and ultimately BAC had permission from the Office of the Comptroller to put Countrywide into bankruptcy so if they got a settlement they wouldn't be able to collect it anyway.
    6 Jun 2013, 04:02 PM Reply Like
  • AIG's case is looking pretty lame if you ask me...
    7 Jun 2013, 06:47 AM Reply Like
  • My points is who selected the trial date because it can not be AIG since AIG lawyer said that AIG does not have all the material ready yet. So, everybody should be waiting to see if BAC would declare "bankruptcy" over this acquisition.
    9 Jun 2013, 02:23 PM Reply Like
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