Bank of America’s Mortgage Settlement Successfully Appealed
Bank of America’s (NYSE:BAC) negotiated $8.5 billion mortgage settlement with a clutch of institutional investors in the court of U.S. District Judge William Pauley, has been appealed successfully in the 2nd Circuit Court of Appeals in New York.
The appellants were Bank of New York Mellon Corp (NYSE:BK), Blackrock Inc (NYSE:BLK), MetLife Inc (NYSE:MET) and Pimco, who raised an issue on whether Pauley “correctly took the case from the state court”.
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The settlement would have seen Bank of America put an end to most of its liabilities arising from its 2008 milestone purchase of Countrywide Financial.
The Circuit Court asked the parties involved to address several issues in its two-page decision, and is expected to announce its decision in 60 days.
“We have jurisdiction to determine our jurisdiction,” the 2nd Circuit said.
Here’s how Bank of America shares are reacting to the news:
Bank of America Corporation (NYSE:BAC): BAC shares recently traded at $5.33, down $0.15, or 2.74%. They have traded in a 52-week range of $4.92 to $15.31. Volume today was 51,170,270 shares versus a 3-month average volume of 265,240,000 shares. The company’s trailing earnings are $-0.31 per share.
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