"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.