Soured Home Loan Puts Bank of America in Bad Taste
According to a Bloomberg report quotes Kathy Patrick, a partner at Houston-based Gibbs & Bruns LLP, which represents investors in the case. Last week, Bank of America Countrywide Financial Corp., its former outside auditing firm KPMG, had won in Los Angeles court approval to reduce the settlement with investors sue for loss of home loan securities fraud, the initial 624 million U.S. dollars to $ 601,500,000.
However, the Michigan public pension funds claim $ 65 million in home loan losses, Oregon funds claim another $ 14 million in losses, and fund a Fresno, California, refused to give in to the settlement and filed new charges. In October there were 115 complaints sue BofA home loan for damages that Pacific Investment Management Co., BlackRock Inc. and the Federal Reserve Bank of New York. Now the number has risen to 225.
Added to this is another indictment on February 25 by David Grais, a New York-based lawyer who deals with more than $ 700 million home loan fraud charges filed in court by another group of investors at the Bank of America. Fresh from giving in to a $ 10 million settlement with the Securities and Exchange Commission over charges of data mismanagement and illegal trading charges filed against acquired Merrill Lynch’s BofA faced with yet another burden after a group of insurers, asset managers and banks, joined the home loan dispute.