Sunday, August 26, 2012

Bank of America: Appeals Court to Hear Settlement Case

One of Bank of America’s (BAC) open cases could move closer to being closed after a federal appeals court agreed to hear a request to move an $8.5 billion settlement back to state court.

Bank of America reached a deal with 22 institutional investors including BlackRock (BLK) over mortgage bonds, but an investor group led by Walnut Place LLC has fought the settlement, claiming it is too low.

If the case goes back to state court and the settlement is approved, it would bind all of the investors to the settlement, even if they were not part of the group that negotiated, it, Bloomberg reported.

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