NEW YORK (
Bank of New York Mellon
has filed court papers opposing
in a proposed $8.5 billion settlement between
Bank of America
and 22 large institutional investors over mortgage bonds.
New York attorney general Eric Schneiderman
Schneiderman argues Bank of New York Mellon was conflicted in its role as trustee because it stands to benefit financially from agreeing to a settlement that goes easy on Bank of America.
BNY Mellon had already defended itself against those allegations, calling them "outrageous, baseless,
and unsupported by fact and law," promising to "fight them, if necessary, in court."
In the documents filed Wednesday, BNY Mellon argues the New York Attorney General has no authority to intervene in the settlement, which involves,
, and the
Federal Reserve Bank of New York
, among other parties. The brief also says an intervention by the attorney general "would be a logistical nightmare," while requiring a "full-blown jury trial."
The Attorney General responded by defending its interest in the case, arguing that "those who stand to be significantly affected
by the settlement include New York State investors and pensioners, as well as distressed homeowners residing throughout the state and country."
Written by Dan Freed in New York
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