Investors from Bank of America have had their payouts delayed in the $ 8.5bn mortgage securities settlement by Judge Scarpulla in New York County after the trustee, Bank of America , which is overseeing the securities, asked for instructions on how to split the proceeds among the investors. The issue is whether each trust should first count the money it will receive from Bank of America as a decrease in the trust's liabilities to investors or as an increase in the trusts assets; in some trusts, the order could end up with investors in less-secure investor classes getting payouts that otherwise would go to more senior ones. The settlement revolves around claims involving $ 8.5bn of mortgage securities issued by the former Countrywide Financial Corp which was purchased by Bank of America in Feb. 23 .
Investors from Bank of America have had their payouts delayed in the $8.5bn mortgage securities settlement by Judge Scarpulla in New York after the trustee, Bank of New York Mellon, which is overseeing the securities, asked for instructions on how to split the proceeds among the investors. The issue is whether each trust should first count the money it will receive from Bank of America as a decrease in the trust's liabilities to investors or as an increase in the trusts assets; in some trusts, the order could end up with investors in less-secure investor classes getting payouts that otherwise would go to more senior ones. The settlement revolves around claims involving $174bn of mortgage securities issued by the former Countrywide Financial Corp which was purchased by Bank of America in 2008.