Recall the controversial $8.5 billion settlement between Bank of America and a group of investors--including the likes of PIMCO, Blackrock, the Federal Reserve Bank of New York and other big names--was initially hailed as a huge victory for Bank of America.

But the fallout was swift. Other investors aggressively protested what they saw as a sweetheart deal that was rammed through without due process for all investors. The trustee for the Countrywide bonds ended up taking a lot of bitter criticism about its role and whether it was acting impartially or in its own self-interest. The settlement has turned into a big negative for Bank of America, as it does nothing to help clear up the legal risk that hangs over the bank.

Is that uncertainty now poised to spread to JPMorgan Chase and Wells Fargo? The bondholder group had previously signaled that it intended to pursue action against the two big banks, and Forbes notes that the group is making good on its word. The group is using its heft to press the trustee for the toxic bonds--U.S. Bank and HSBC--to investigate the matter, with an eye on an eventual legal settlement.

The trustees are no doubt aware of what happened to the BNY Mellon as trustee for the Countrywide MBSs. They'll be unlikely to grant a sweetheart deals. The bottom line is that the MBS fallout is continuing, three years after the financial crisis. It's unclear if banks have adequately reserved against this additional risk.

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