Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
FDIC Objects To BofA Mortgage Settlement
WASHINGTON (10/9/13)--The Federal Deposit Insurance Corp. this week objected to a $500 million April settlement between Bank of America and several class action plaintiffs.

The objection was filed in California state court.

The suit involves Bank of America subsidiary Countrywide Mortgage's sale of mortgage-backed securities in the days before the financial crisis. A number of pension funds were among those that brought or later joined in the lawsuit against the bank.

According to Bloomberg News, the FDIC said the proposed settlement was not enough. The $500 million total only represents about 0.11% of the face value of the securities it covers, the FDIC said. In similar cases, plaintiffs have received 1.1% of the value of the securities in question, Bloomberg noted. In its objection, the FDIC also said the plaintiffs that accepted the settlement had a conflict of interest: Lawyers and main plaintiffs in the settlement would receive substantially more than other minor plaintiffs in the class action suit.

Bank of America did not comment on the FDIC objection.

A hearing on the settlement has been scheduled for Oct. 28. The settlement could be approved at that time.
Other Resources

Bloomberg Report
RSS





print
News Now LiveWire
.@FLCreditUnions keeps fin lit conversation going with #RequiretheMoneyCourse social campaign @FLAeconomics http://t.co/Ly86IuHjza
22 minutes ago
#Economy gains 295,000 jobs in Feb. http://t.co/bD1MRWewGi
1 hour ago
#NewsNow N.C. CU members save more than $3.8M through Save to Win http://t.co/X0kelvO5L6
1 hour ago
#NewHampshire CUs briefed on IOLTAs http://t.co/HPnAkzLrTp
3 hours ago
App puts #CUNAGAC in palms of attendees' hands #NewsNow http://t.co/piabPHIGb5
19 hours ago