Bank of America's (BAC) Multibillion MBS Settlement Gets 'Nutty'
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Bank of America (NYSE: BAC) shares are trading lower pre-market Tuesday as the financial institution is receiving some gruff from bond investors over its recent multibillion settlement with MBS holders.
The group of investors, who dubbed themselves Walnut Place, claim the parties who crafted the deal with BofA have a conflict of interest.
In a recent court filing, the group of 11 bond investors said "Walnut Place has serious concerns about the secret, non-adversarial, and conflicted way in which the proposed settlement was negotiated and about the fairness of the terms of the proposed settlement."
The initial settlement amount is for $8.5 billion. Walnut Place is currently mulling whether to intervene.
Walnut Place contends many of the 22 self-appointed investors have "extensive other business relationships" with BofA.
BofA shares are down 1.4 percent ahead of the bell.
The group of investors, who dubbed themselves Walnut Place, claim the parties who crafted the deal with BofA have a conflict of interest.
In a recent court filing, the group of 11 bond investors said "Walnut Place has serious concerns about the secret, non-adversarial, and conflicted way in which the proposed settlement was negotiated and about the fairness of the terms of the proposed settlement."
The initial settlement amount is for $8.5 billion. Walnut Place is currently mulling whether to intervene.
Walnut Place contends many of the 22 self-appointed investors have "extensive other business relationships" with BofA.
BofA shares are down 1.4 percent ahead of the bell.
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