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BofA $8.5B mortgage settlement back in court

  • It's not over yet. While a NY state judge upheld Bank of America's (BAC -0.8%) $8.5B mortgage settlement with private investors, the dissident investors - led by AIG - have asked a new judge presiding over the case (the original judge has been promoted) to take another look, and she has agreed to do so.
  • Lawyers for investors who support the settlement like BlackRock and MetLife sent a letter to the new judge reminding the dissidents own just 7% of the securities in question and are holding "the entire settlement hostage indefinitely." Should the judge allow a new hearing, they are requesting AIG be required to post about $1M per day to cover the costs a stay would have on those who want their settlement monies.
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Comments (15)
  • DoowopDave
    , contributor
    Comments (222) | Send Message
     
    Bank of America needs to pack up Merrill Lynch and move to Charlotte. It's not just the weather that's better. The legal climate in New York is awful.
    19 Feb, 12:43 PM Reply Like
  • Iknownothing
    , contributor
    Comments (68) | Send Message
     
    That may be but look at all the "shovel ready" jobs we've been getting the last couple of months.
    19 Feb, 02:26 PM Reply Like
  • rocback
    , contributor
    Comments (991) | Send Message
     
    The judge just ruled in favor of the settlement about a hour ago.
    19 Feb, 01:20 PM Reply Like
  • SA_Member_12759281
    , contributor
    Comments (29) | Send Message
     
    Per Bloomberg: "Today, Justice Saliann Scarpulla, who took over the case, said she will not delay entry of the settlement, which will be made effective “expeditiously,” she said."

     

    In other words, I got my head handed to me so I will now be following the rule of law.

     

    Don't hold your breath waiting for this item to hit the wires. Any good news concerning BAC is systematically buried, while perceived negatives are breathlessly shouted to the rooftops.
    19 Feb, 01:32 PM Reply Like
  • MatchlessGlory
    , contributor
    Comments (36) | Send Message
     
    Thanks for the update
    19 Feb, 03:46 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8610) | Send Message
     
    This mess will go on well into the next decade.
    19 Feb, 02:16 PM Reply Like
  • Charles100
    , contributor
    Comments (5) | Send Message
     
    Really, its time to move on. Long and overly generous settlements/law suites are ruining business. Its time to stop it.
    19 Feb, 02:38 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (2094) | Send Message
     
    AIG should just take the $$ and run.
    19 Feb, 04:32 PM Reply Like
  • mcdonaldfive
    , contributor
    Comments (32) | Send Message
     
    The new judge needed time to look it over. BAC got to keep their money a few more weeks. It sounds like the new judge has come around. It was a good play to suggest the $1 M per day payment while the (very) minority party held things up. All is good now and BAC can move on. Some people may think this a new $8.5B deal - buying opportunity for those with a memory.
    19 Feb, 05:26 PM Reply Like
  • Rebel1124
    , contributor
    Comments (2) | Send Message
     
    CNBC conveniently left out this news. After being wrong for 4 years on the market they still want to be negative.
    19 Feb, 11:16 PM Reply Like
  • caddy311
    , contributor
    Comments (154) | Send Message
     
    Big News...not the rainy day headlines posted above:

     

    - http://yhoo.it/1gIPk1o

     

    - http://bit.ly/1gIPiXd
    20 Feb, 12:23 AM Reply Like
  • caddy311
    , contributor
    Comments (154) | Send Message
     
    BofA $8.5 billion deal to go forward; AIG loses bid to delay: "It's very straightforward," Scarpulla told lawyers for AIG, which was one of the investors in the mortgage securities. "Judge Kapnick issued the order. ... If you don't like it, your remedy is to appeal."
    20 Feb, 11:41 AM Reply Like
  • TBV
    , contributor
    Comments (115) | Send Message
     
    Don't mislead readers as if AIG has won the case or played the hands right.

     

    AIG lost. Its a common practice in NY law to reargue..over and over on issues that already final orders have been made. All the lawyers know that.

     

    Why then AIG goes on? Because they have another case against BAC and thinking that they can leverage this case over the other and delay the ruling so they can negotiate at a better term. BAC on the other hand thinks otherwise.
    20 Feb, 01:35 AM Reply Like
  • BAHAMAS1
    , contributor
    Comments (2094) | Send Message
     
    cnbc is inherently Negative as they keep thinking negative increases viewership.

     

    I guess they haven't read their metrics that show a loss of 50% , that's right 50% of viewers since 2008. The only reason they're still around is that other networks have not made a bona fide run at them...yet.
    20 Feb, 09:15 AM Reply Like
  • RALPHSCHAUSS
    , contributor
    Comments (58) | Send Message
     
    A total disgrace of the legal system in NY and generally in the USA. Litigation is a prime activity lots of parties . A huge waste inflicted on the productive US economy. I agree with a comment above, it's better not to do business in NYC and move all your operations outside NY state. I have never seen so much ecomic waste inflicted by a legal system as there.
    20 Feb, 10:06 AM Reply Like
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