Attorney Kathy Patrick, who represents the investor group that helped negotiate the deal, had no immediate comment on the filing. 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. In other cases, such as those involving Countrywide and Wachovia, shareholders may be able to get payments even if they are not entitled to them.
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. In other cases, such as those involving Countrywide and Wachovia, shareholders may be able to get payments even if they are not entitled to them.