NEW YORK (TheStreet) -- Goldman Sachs (GS) is the latest investor to object to Bank of America's (BAC) $8.5 billion mortgage settlement, saying it did not have sufficient information to evaluate the deal in a court filing late Tuesday.
According to a Bloomberg report, the investment bank said in its filing that it could not determine whether "all investors who are similarly situated will be treated equally."
Bank of America is seeking approval of its $8.5 billion settlement, which it negotiated with a group of institutional investors including Blackrock (BLK) and Pimco as well as subsidiaries of Goldman Sachs. Bank of New York Mellon (BK) acted as a trustee of the affected mortgage-backed securities trusts.
Investors including AIG (AIG), the Federal Deposit Insurance Corp., the National Credit Union Administration, six Federal Home Loan Banks and several public pension funds have objected to the deal.The FDIC said that it is objecting to the agreement because it is holding Countrywide mortgage paper "covered by the proposed settlement" inherited from "numerous" failed banks, because it "does not have enough information to evaluate the Settlement." It said it filed the notice to preserve its right to make claims as part of the settlement and seek further information. Bank of America spokesman Lawrence Grayson said, "We believe that the trustee acted reasonably in entering into the settlement, and that there are compelling reasons why the agreement should receive judicial approval." Shares of Bank of America were up 1.6% in Wednesday afternoon trading on news that it would sell its correspondent mortgage business.. The stock has recovered 16% since Warren Buffett's Berkshire Hathaway (BRK.B) gave the bank its blessing with an investment of $5 billion. --Written by Shanthi Bharatwaj in New York
>To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV