Explosive allegations in BofA hearing over $8.5B MBS settlement
Advocate of the settlement accused of rubber-stamping a cheap deal
A New York State Supreme Court judge continued hearing explosive allegations in an Article 77 hearing that will determine whether Bank of America’s (BAC) massive $8.5 billion mortgage-backed securities settlement with investors is approved.
Investors have been pushing back at the settlement for well over a year, Seeking Alpha reports. AIG is one of the firm’s objecting to the settlement passionately.
But what really caught the market’s attention Friday is AIG’s attempt to describe an advisor to the deal as nothing more than a “rubber-stamp” representative who pushed for a cheap deal. Seeking Alpha more fully explains:
In what CLSA Mike Mayo describes as the most explosive action thus far, AIG's attorneys tried to establish Brian Lin of little-known RRMS Advisors (he was hired by BK to write a report on the reasonableness of the $8.5B deal) was no more than a rubber-stamp for the cheap settlement. The judge eventually had to step in and cut off questioning.