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) --

Bank of America

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's liability tied to mortgages originated by

Countrywide Financial

remains unquantifiable and could continued to mount for years to come, according to industry analysts.

"The legal troubles for Countrywide are not going to end anytime soon. Countrywide was at the epicenter in faulty underwriting compared to its peers," said Stifel Nicolaus analyst Christopher Mutascio.

FBR Capital Markets' analyst Paul Miller agrees that legal settlements due to the Countrywide acquisition will keep piling on the bank.

"They underestimated the liabilities associated with Countrywide," said FBR Capital Markets' analyst Paul Miller. "However, I don't think they will have to make raise capital any time soon because of it."

On Friday a federal judge in Los Angeles approved a deal for the Bank of America to pay $600 million to 33 investors - including pension funds -- that filed a class action lawsuit against it for misleading investors about Countrywide's underwriting procedures.

Despite the settlement, some of the institutional investors involved in the lawsuit have rejected the $600 million court settlement and are trying to settle with Bank of America on their own terms. Over 33 investors pulled out of the agreement, including


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, the California Public Employees Retirement System;

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T. Rowe Price Group

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Nuveen Investments

; and the

Maryland State Retirement and Pension System

, according to the

Los Angeles Times.

"It is unfortunate that some investors chose to opt out of what we believe is a fair and equitable agreement to settle these issues," wrote Bank of America spokesperson Shirley Norton.

In 2008 Countrywide's shares plummeted

90 percent

to around $4. Shortly after that fall, Bank of America purchased Countrywide for $4 billion.

--Written by Maria Woehr in New York.

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