BANK OF AMERICA ABOUT TO PAY $8.5 BILLION TO SETTLE LAWSUITS OVER MORTGAGE BACKED SECURITIES

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The Bank of America is on the verge of settling claims from investors who lost money on mortgage backed securities in the record amount of $8.5 billion. The bank’s board met Tuesday to discuss the amount to pay the investors which includes BlackRock, MetLie and the Federal Reserve Bank of New York. When news of the settlement leaked, the BOA stock rose 3.5% in after-hours trading. An announcement is expected within 10 hours.