BoA seeks mortgage settlement

Bank of America sign Bank of America is looking to settle many of its cases

Related Stories

Bank of America has agreed to pay $315m (£196m) to investors who say they were misled about mortgage backed securities sold by the firm.

The settlement was revealed in court papers late on Monday night.

However the deal, with the Public Employees' Retirement System of Mississippi pension fund, requires the approval of a judge.

It is the latest in a long line of settlements by US banks - some of which have been rejected by judges.

In the first half of the year Bank of America offered $12.7bn to settle similar claims with other investors.

However, the latest deal, for securities under-written by Merrill Lynch, includes no admission of guilt from the bank which may mean it is rejected by the Manhattan based judge, Jed Rakoff.

Last week Judge Rakoff rejected a similar settlement from Citigroup with the Securities and Exchange Commission.

The judge said settlements should not prevent information emerging regarding "the transparency of financial markets whose gyrations have so depressed our economy and debilitated our lives."

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories



  • Lucy FranklinDouble trouble

    'Rising house prices left me high and dry - twice!'

  • NS Savannah, 1962Nuclear dream

    The ship that totally failed to change the world

  • Ed Miliband takes a selfie at a Cambridge hairdressersNo more photo ops?

    Why is Ed Miliband drawing attention to his public image?

  • Espresso cup7 days quiz

    Which city serves the strongest cup of coffee?

  • Glasgow 2014 quaichs and medalsQuaich guide

    What do the Scottish gifts given to Games medallists symbolise?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.