Bank of America
is shelling out $8.5 billion to settle allegations by 22 investors, including BlackRock [see profile]
and Pimco [see profile]
, who suffered losses on mortgage-backed securities issued by Countrywide Financial
, according to media reports.
The settlement "could embolden mutual-fund managers, insurance companies and investment partnerships to seek similar settlements with other major U.S. banks by arguing that billions of dollars in loans they bought before the housing collapse didn't meet sellers' promises or were improperly managed,"
writes The Wall Street Journal's
Armie Margaret Lee
Stay ahead of the news ... Sign up for our email alerts now