Bank of America, like all other banks, has moved to settle many of the mortgage-related charges against it by regulators as well as private litigants.

It has been successful to some degree. But while it might be praised for its ability to strike good deals, those deals are also subject to heavy scrutiny. Recall that Judge Jed Rakoff was incensed at the sweetheart deal the bank struck with the SEC to settle charges over Merrill Lynch disclosure issues. He essentially demanded harsher terms. Now, the New York State AG is taking a look at Bank of America's deal to settle charges from big-name bondholders seeking putbacks of bonds built on soured mortgage-backed securities.

The issue seems to have been forced by one investors group, Walnut Place, which took issue with the settlement. It charged that the deal was struck in secret and doesn't allow objectors to opt out. It also takes the Bank of New York Mellon to task for various conflicts of interest in its role as the trustee for mortgage pools in question. The deal does seem quite favorable to Bank of America. We're also hearing objections being raised in Washington, where some have argued that Bank of America and Bank of New York Mellon did not provide enough information to determine if the settlement was fair to all, according to the New York Times.

For more:
- here's a New York Times article

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