New York Attorney General Eric Schneiderman put another spoke in the wheel of the $8.5 billion residential mortgage-backed securities settlement proposed by The Bank of New York Mellon (BK) and Bank of America (BAC) last year.
The deal, proposed last summer, was supposed to solve issues with Countrywide mortgages held in trust for investors. The Bank of New York Mellon served as trustee on that transaction. After the trustee and BofA tried to resolve the issues with a settlement, investors holding an interest in the trust questioned the deal's fairness.
Bloomberg news reported Wednesday that Schneiderman's office asked a New York state judge to intervene in the settlement since he believes the deal is unfair to investors and only covers a fraction of their losses in Countrywide mortgages.
Click here to read the full article in Bloomberg.