NEW YORK (
is the latest investor to object to
Bank of America's
$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
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
as well as subsidiaries of Goldman Sachs.
Bank of New York Mellon
acted as a trustee of the affected mortgage-backed securities trusts.
Federal Deposit Insurance Corp.
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
gave the bank its
blessing with an investment of $5 billion.
--Written by Shanthi Bharatwaj in New York
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