Countrywide Financial News

Negotiations that led to an $8.5 billion mortgage-bond settlement between Bank of America Corp. and institutional investors were tense and combative, the bank's chief risk officer testified.

Bank of America boss Brian Moynihan was this close to punting on costly mortgage nightmare Countrywide Financial, according to new testimony.

The accord came after the investors were told by Bank of America that it had clearance from a federal banking regulator to put Countrywide, which was facing investor claims over defective loans, into bankruptcy,

Bank of America's $8.5 billion settlement with institutional investors that lost money on mortgage-backed securities is being considered in court this week.

Bank of America agreed to the proposed settlement in June 2011 to resolve claims by investors who held bonds issued by mortgage lender Countrywide Financial Corp, which Bank of America bought in 2008 [NEW YORK] A long-running fight comes to a head on Monday when court proceedings begin over an US$8.5 billion settlement between Bank of America Corp ... (more)

Not unsurprisingly, as the article was passed among trade players on LinkedIn, the voice of objection grew louder and louder.