A short while ago, Bank of America entered into an $8.5 billion settlement with a group of institutional investors such as Blackrock, Inc., the Federal Reserve Bank, and Pimco of a lawsuit alleging that Bank of America sold poor-quality mortgage bonds to investors knowing that they were not as represented.
On July 5, 2011, a group of bond investors, calling themselves Walnut Place, said they objected to the terms of the settlement. In a filing with the New York Supreme Court, the investors said they wanted to be excluded from the settlement that was struck after negotiations between the bank and 22 institutional investors. The settlement was meant to cover a broader group of investors being represented by a trustee.
The Walnut Place group said the 22 investors were self-appointed and didn’t represent or solicit the views of the broader group of bondholders.
