Bank of America's (BAC +0.5%) $8.5B settlement to take care of claims from Countrywide-backed MBS should be rejected, says a group of investors led by AIG in a NY State Supreme Court filing today. Separately however, the FHFA withdrew its "conditional objection" to the settlement. The Article 77 hearing is set to begin on May 30. BofA would be open to massive liability should a judge throw out the agreement.
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