Appeals Court Rules in Favor of Bank of America

Appeals Court Rules in Favor of Bank of America

The bank is seeking approval of its proposed $8.5 billion settlement with investors in mortgage-backed securities, according to <I>Reuters</I>.
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NEW YORK (

TheStreet

) -- A U.S. appeals court ruled Monday that a proposed $8.5 billion settlement by

Bank of America

(BAC) - Get Report

related to mortgage-backed securities should be returned for review to the New York state court system, according to

Reuters

.

The ruling reverses a decision made by a U.S. district court judge in October,

Reuters

said. Bank of America is looking to settle "claims by investors in 530 mortgage securitization trusts with $174 billion of unpaid principal," the report said.

Bank of America shares closed Monday at $8.04, up 2%. The stock is up more than 40% so far in 2012.

--

Written by Michael Baron in New York.

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Michael Baron

.

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