Even as New York Attorney General Eric Schneiderman dropped his objections to the $8.5 billion settlement, he announced plans to sue Bank of America and Wells Fargo ( WFC) for alleged violations of the National Mortgage Settlement involving most large U.S. banks tied to foreclosures. The issue is unlikely to be anywhere near as costly, however, as the potential fallout from MBS litigation.

-- Written by Dan Freed in New York.

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

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