Investors plant legal trap to halt $8.5 billion MBS settlement 

Investors in soured Countrywide mortgage-backed securities used a legal trap Friday to block a controversial $8.5 billion MBS settlement between The Bank of New York Mellon and Bank of America [stock BAC][/stock]. The plaintiff in the case, Walnut Place, represents investors in Countrywide MBS who are trying to block Bank of New York Mellon – a Trustee holding the plaintiffs’ MBS investments  — from settling with Bank of America over the sale of toxic, securitized loans without considering all of the investors’ concerns.