Schneiderman asks questions about BofA $8.5B settlement

July 13, 2011 09:44AM

New York Attorney General Eric Schneiderman is asking for information about the $8.5 billion settlement agreed to by Bank of America and representatives of 22 large investment firms, according to the New York Times, an indication that he may challenge the deal.

Last month, BofA agreed to pay $8.5 billion to investors nationwide to settle claims that it sold bad mortgages. The settlement covers 530 trusts with an original balance of $424 billion, and is scheduled to be approved by a court Nov. 17.

Letters sent by Schneiderman’s office to the firms that agreed to the settlement address concerns that the deal may have been struck without full cooperation from all investors who would be affected by its terms. The letters, obtained by the New York Times, were sent to BlackRock Financial Management, Metropolitan Life Insurance, Pimco, Goldman Sachs Asset Management and 18 other companies.

A spokesman for Mr. Schneiderman declined to comment.

One investor, Walnut Place, has already objected to the terms of the settlement in Filings Made Last Week With The Court, the Times said. [NYT]