Delaware Attorney General Beau Biden files a motion in New York Supreme Court objecting to a proposed $8.5 billion settlement between Bank of America and Bank of New York Mellon.
Biden wants more information and is concerned about potential violations of Delaware law and inadequate response to investors.
“I am intervening to enforce our laws and to protect Delaware investors who may have been harmed by these toxic securities,” Biden said. “Intervening in this settlement puts us in position to ensure that the banks are playing by the rules.”
The banks reached the settlement in June over claims that Countrywide Financial, which is now owned by Bank of America, defrauded investors by misrepresenting “toxic loans” that were bundled and sold together to investors in trusts, including at least two trusts incorporated in Delaware. Biden’s office says the settlement was agreed to without the input of many of the investors.