BofA mortgage claims set ‘eye-watering’ precedent

Bank of America will pay $8.5bn to end the putback dispute that it is involved in with a group of 22 institutional investors including BlackRock, Pimco, MetLife and the Federal Reserve of New York. But the bank has also set aside a further $5.5bn to deal with representations and warranties liabilities for other exposures, and another $6.4bn for further mortgage write-downs.