Investors extend talks with BofA on bonds
NEW YORK: Bank of America (BofA) said talks will continue with bondholders who are demanding it to buy back securities backed by billions of dollars of bad mortgages.
Bank of America has been in talks with investors including Pacific Investment Management Co (Pimco), BlackRock Inc (BLK) and the Federal Reserve Bank of New York over $47 billion of mortgage bonds, Bloomberg News reported. Some of these investors agreed to extend a deadline set in October, Bank of America said.
The bonds are backed by loans created by Countrywide Financial, a unit of Bank of America. "The reason settlement i s a much-preferred alternative to litigation is to avoid extensive discovery," said Manal Mehta, a cofounder of hedge fund Branch Hill Capital in San Francisco. " Who knows what sorts of skeletons lurk in the closets of Countrywide?" -PB News
LAHORE: Former Prime Minister Nawaz Sharif speaks during a ceremony celebrating the 106th establishment anniversary of PML. -Online