Boston, MA 02/19/2014 (wallstreetpr) – Bank of America Corp (NYSE:BAC) got an all clear from a New York supreme court for its bond settlement worth $8.5 billion with a group of securities investment. The ruling could create more problems in the coming days as it contained a concerning caveat. The ruling is thought to have excluded some claims which some investors had raised.
Some of the claims excluded involve billions of dollars in mortgages that Bank of America Corp (NYSE:BAC) had modified to help borrowers retain their houses. If the investors decide to follow on the matter, Bank of America could be forced to pay more on their initial settlement. The ruling mainly focused on mortgages that BAC subsidiary Countrywide Financial had issued that were thought to be substandard or fraudulent.
The ruling is a win at the moment on the side of Bank of America Corp (NYSE:BAC) although Lawyers on both sides spent most of the time after the ruling trying to interpret it in bid of determining the next course of action. Lawyers from AIG maintain the $8.5 billion is a mere slap on the wrist considering it is only a small fraction of the total losses that many investors and homeowners incurred.
AIG lawyers on their part intend to appeal the ruling as they feel the ruling was unfair in a statement they were quoted as saying “This case is very far from over”. A lot waits to be seen of what will be Bank of America next step, of which the bank might still negotiate for settlement on the modification claims.
The ruling saw a total of 22 bond investors agreeing with the settlement some of whom included BlackRock, Pimco and Metropolitan Life insurance.
Bank of America Corp (NYSE:BAC) slumped on Tuesday trading session with its shares going down by 1.38% to close the day at $16.47 a share
