Deleware Attorney General Stepping in Settlement Talks Between BOA and Investors
Bank of America is being sued by its investors and were close to reaching a $8.5 billion settlement. Although that number seems high, its miniscule compared to the $220 billion actually invested for these mortgage backed securities.
Deleware's state attorney general is stepping in and wants to intervew in the case because he feels the settlement offer is too low and wants to make sure investor rights are being protected. If the judge allows the state attorney general to intervene, the AG claims he will investigate further for criminal liability. He vows he will work hand in hand with the Securities and Exchange Commission.
The lawsuit was initially brought in New York because that is where a majority of these trusts were being handled by Bank of America. However, BOA is accused of misleading investors into purchasing these mortgage backed securities and perpetrating an assortment of fraud. BOA was acting as Trustee for these trusts.
Deleware's AG feels the state should be allowed to intervene because a few of these trustes were located in Deleware.
If you want to learn more about this article, please visit Beau Biden, Delaware AG, Moves To Join Bank Of America Mortgage Deal, Signaling Concerns.
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