Closing arguments begin today from an investor group including BlackRock Inc. (BLK) and Pacific Investment Management Co. over a proposed $8.5 billion settlement with Bank of America (BAC) involving legacy Countrywide mortgage bonds.

The investor group has been fighting with another investor, American International Group Inc. (AIG) -- who says the settlement is unfair given the losses involved.

Per Bloomberg News:

For Charlotte, North Carolina-based Bank of America, the settlement is part of an effort by Chief Executive Officer Brian Moynihan to resolve liabilities tied to faulty mortgages that have cost the company about $50 billion in legal claims, including those the bank inherited with the purchase of home lender Countrywide Financial Corp. in 2008.