BlackRock Inc. (BLK) and other investors agreed to an $8.5 billion settlement with Bank of America (BAC) over mortgage loans rather than risk litigation and the bankruptcy of its Countrywide Financial unit, a lawyer for the investors said, Bloomberg writes.

The accord came after the investors were told by Bank of America that it had clearance from a federal banking regulator to put Countrywide, which was facing investor claims over defective loans, into bankruptcy, Kathy Patrick()