Appeals Court Rules in Favor of Bank of America

NEW YORK ( TheStreet) -- A U.S. appeals court ruled Monday that a proposed $8.5 billion settlement by Bank of America ( BAC) 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.

>To contact the writer of this article, click here: Michael Baron.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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