The Federal Reserve Bank of New York joined with the biggest bond investors in the U.S. in seeking to force Bank of America Corp. to buy back bad home loans packaged into securities as the battle over who will bear mortgage losses intensifies.
The institution joined a group including Pacific Investment Management Co., BlackRock Inc. and Freddie Mac in a letter to the lender and to Bank of New York Mellon Corp., trustee for $47 billion of bonds created by Bank of America’s Countrywide Financial Corp. unit, people familiar with the matter said. Countrywide failed to service loans properly, law firm Gibbs & Bruns LLP said in a statement that didn’t name the firms.
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