Court Upholds $8.5 Billion Bank of America Mortgage Crisis Accord

The Appellate Division, First Department, has upheld the $8.5 billion settlement of claims against Bank of America for its involvement with the mortgage crisis, the New York Law Journal's Ben Bedell reports. The appellate panel reversed a lower court judge, who ruled that Bank of New York Mellon, which was the trustee for the pooled mortgage trusts, had abused its discretion in waiving claims that dissident investors said were worth $30 billion to $50 billion. Bank of New York Mellon agreed with the reasoning that investors should not try to force Bank of America to buy back mortgages it had modified.