Manhattan Commercial Division Justice Saliann Scarpulla has entered an interim stay of an $8.5 billion settlement deal between Bank of America and institutional investors in mortgage-backed securities before deciding whether to postpone finalizing the judgment.
The order late Tuesday was spurred by a motion request from American International Group, an investor which has opposed the settlement by arguing it short-changes investors and was not made in good faith due to conflicts of interest among counsel for trustee Bank of New York Mellon and Bank of America.
