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Federal home loan banks drop objections to BofA MBS settlement

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According to Bloomberg, three federal home loan banks dropped their opposition to Bank of America’s (BAC) $8.5 billion settlement over faulty Countrywide mortgage-backed securities.

Lawyers for the Federal Home Loan Banks of Boston, Chicago and Indianapolis yesterday told New York Supreme Court Judge Barbara Kapnick they are withdrawing from the case.

Also yesterday, lawyers for Cranberry Park LLC and Cranberry Park LLC II, funds which in August said they owned Countrywide securities with an original principal value of more than $1 billion, asked the judge for permission to withdraw their previous objection to the settlement.

Source: Bloomberg
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