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Bank of America will pay investors $8.5 billion to compensate them for Countrywide's dealings years before the subprime lender was acquired by BofA. The settlement resolves nearly all of BofA's first-lien repurchase exposure from Countrywide-issued bonds. It involves 530 trusts and $424 billion in securities. The company has also agreed to implement certain servicing changes, which will cost some $400 million. BofA says the cleanup will leave it with a loss for the second quarter, but the market has responded positively to the news.
Read More »BofA Reaches Settlement With Investors Over Legacy Countrywide Deals
