BofA $8.5B mortgage settlement back in court

|About: Bank of America Corporation (BAC)|By:, SA News Editor

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.