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New York AG Seeks To Stop BofA $8.5 Billion Settlement

New York's attorney general wants to stop a $8.5 billion settlement between Bank of America and Bank of New York Mellon. The New York Times has the story here. The settlement concerns mortgage-back securities issued by Countrywide. Bank of America purchased Countrywide in 2008. According to the Times, a lawsuit filed by AG Eric Schneiderman contends "Bank of New York breached its duties to investors by agreeing to the deal with Bank of America ... because the trustee is conflicted and 'stands to receive direct financial benefits' as a result of the agreement." The lawsuit says that could compromise investors' claims, the Times reports. A Bank of New York Mellon spokesman calls the allegations baseless and outrageous.