In­vestors ex­tend talks with BofA on bonds

The Pak Banker - - Company& -

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

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