Bank Of America Settles Investors' Mortgage Lawsuit For $315 Million

NEW YORK - Bank of America has agreed to pay $315 million to settle claims by investors that they were misled about mortgage-backed investments sold by its Merrill Lynch unit.

The settlement was disclosed in court papers filed late Monday in U.S. District Court in Manhattan and requires the approval of a judge.

The class action lawsuit was led by the Public Employees' Retirement System of Mississippi pension fund.

The settlement represents another attempt by Charlotte, N.C.-based Bank of America Corp. to put its legal issues behind it. Just in the first half of the year, the bank put up $12.7 billion to settle similar claims from different groups of investors.

Comments

[hohonu maluhia]

02:35 PM on 12/12/2011

It's encouraging (and sad) to see that I'm not alone in my disdain for BOA. What initially appeared to be an easily corrected administrative oversight that BOA could have easily corrected has turned into a 4 month battle for them to remedy this situation. This story is further evidence that BOA has lost its moral compass. Please take a moment to read/sign my modest petition on change.org
http://www.change.org/petitions/have-a-heart-bank-of-america
Your support will help me make sure that BOA starts to respect the people is so easily dismisses and steals from without regard. Thanks! (BTW, I too am shocked that anyone would still bank with this behemoth!)

[Realist2011]

03:15 PM on 12/07/2011

I'm hoping that since this is just one of so many lawsuits that either are, or willing be arriving at BofA's (Bunch of A$$es) offices, that just maybe we'll be rid of this pile of poop before long.

Dreams are a wonderful thing

[hohonu maluhia]

02:37 PM on 12/12/2011

I'm one of those lawsuits waiting at the door. Let's see if they decide to make good. Dreams become a reality when we make them happen!

[jteschke]

04:39 AM on 12/07/2011

It sounds like a lot of money until it is compared to the seven trillion dollars loaned to the big banks by the Federal reserve, perhaps a trillion of which inured to the benefit of Bank of America. The financial system has lost credibility and legitimacy.

[RitaS]

01:49 AM on 12/07/2011

A pittance against the damage that Bank of America has caused to not only it's investors but the public in general...

[greysells2]

03:08 PM on 12/07/2011

Do people still put their money in BofA?

[RitaS]

09:34 PM on 12/08/2011

Unfortunately yes, 'low info' people....

[Topdown1]

12:10 AM on 12/07/2011

Is that 315 million comming from the federal bailout money?

[Dean Longrie]

11:36 PM on 12/06/2011

what ever happened to the suit about the overdraft fees?? did they settle that yet?

[JubalTHarshaw]

10:21 PM on 12/06/2011

A little short on facts; sadly, as in most class action lawsuits, the Plaintiff's attorneys will benefit far more than the Plaintiffs themselves.

[tjdwill02]

10:31 PM on 12/06/2011

...and 315 mil is chump change for BOFA. Just another slap on the wrist with no arrests for fraud and no confession of wrong doing. American Justice at its finest !

[xilduq]

11:30 PM on 12/06/2011

http://www.ritholtz.com/blog/2011/12/wall-street’s-recidivists/

[yishai ettebe]

09:56 PM on 12/06/2011

That is a drop in the bucket for them.

[Wilkby]

10:36 PM on 12/06/2011

The drop in the bucket, should be someone's head.

[belldn3]

09:23 PM on 12/06/2011

Stick it to'em.

[JubalTHarshaw]

10:22 PM on 12/06/2011

It's over.

[xilduq]

09:13 PM on 12/06/2011

bank commits fraud
bank commits fraud
bank commits fraud
bank commits fraud
bank commits fraud
bank commits fraud
bank gets caught committing fraud
bank agrees to miniscule fine while admitting no wrongdoing
rinse
repeat

justice is served!!

[jteschke]

04:41 AM on 12/07/2011

Dick and Jane: the 2011 version.

[realsurfin]

08:54 PM on 12/06/2011

chicken feed to BOA... where is the Jail Time... there should be a bunk next to Bernie Madoff... Martha Stewart did more time for a whole lot less... something stinks.

[jteschke]

04:45 AM on 12/07/2011

Martha Stewart should not even have done time. She would not have even been charged in any other Western country. The law she was convicted under, "lying to a federal agent" not under oath, violated the fifth amendment protection against self-incrimination. Provisions analogous to the fifth amendment exist in all civilized legal systems. The problem is that fascist judges hold individuals outside the system's protection to a different standard than the immunity conferred upon regime insiders by a system which has taken leave of the rule of law..

[countdown69]

08:38 PM on 12/06/2011

Not enough. Every one of them should be in jail.

[mazzo]

08:36 PM on 12/06/2011

For a company that makes Billions in profits, this is but a slap on the wrist. Someone needs to go to jail for this fraud, not pay-a-fine-so-you-can-keep-screwing-millions-of-people.

should be jail, not a "settlement"!!!

[mutopis]

08:27 PM on 12/06/2011

Bank of America has piles of money, they make billions in profits and this is all they got? You know they will have to divide the money and then pay some of that to lawyers, at the end there is little left...

[zlohcuc]

07:49 PM on 12/06/2011

I really believed that the DOJ under Gonzo was the worst possible institution...Holder is worse.No one that I know of connected with these activities has been indicted, tried or convicted This has got to be an incredible anomaly or off the charts malfeasance on the part of the DOJ. I'm guessing the latter.