Wednesday, February 5, 2014

Bank of America's $8.5 billion settlement not a done deal

Bank of America's $8.5 billion settlement with investors who bought bad mortgage securities is not a done deal quite yet. A judge has delayed a final judgement on the accord in order to consider more appeals and legal filings in the case, Reuters reports.

Last week, a different New York judge had given preliminary approval to the settlement first announced back in 2011. That same say, lawyers representing insurer American International Group said they planned to appeal.

Analysts view the settlement as an important indicator of the Charlotte bank's legal liability going forward. Bank of America has already paid about $60 billion in legal costs since the financial crisis, and this agreement represented one of the biggest outstanding issues the bank faced.

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