Winner takes all - conflict over a US mortgage-backed securities deal
On a typical Friday in August, Justice Barbara Kapnick’s state court at 60 Centre Street in Manhattan would be a pretty sleepy place. Not on Friday, 5 August. On that day, lawyers and reporters fought for seats. On the calendar: a proposed settlement that would resolve claims of investors who had bought $424bn (£261bn) worth of mortgage-backed securities from Countrywide Financial Corporation, now owned by Bank of America Corporation (BofA). The $8.5bn (£5.2bn) settlement had been negotiated by Kathy Patrick of Houston’s Gibbs & Bruns, who represented a group of investors, and by Meyer Koplow and Theodore Mirvis of Wachtell Lipton Rosen & Katz, who represented BofA. Also involved in the discussion were lawyers from Mayer Brown, representing Bank of New York Mellon Corporation, the trustee of the contested mortgage-backed securities (MBS).
Conflict is raging over a deal that could allow America’s biggest bank to settle on the cheap with irate mortgage-backed securities investors, reports Nate Raymond
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