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When is a settlement not really a settlement? When the litigatee is a bank!

A group of mortgage-backed securities investors says Bank of America Corp failed to buy back more than $30 billion in loans from investors after the bank modified the mortgages to reduce borrower payments.


The letter also accused Bank of America of self-dealing in connection with the loan modifications, saying it modified first mortgages, which were owned by investors, but left home equity loans owned by Bank of America intact.


Kathy Patrick, of the law firm Gibbs & Bruns, who represents the 22 institutional investors, said the issues raised in the letter date back to 2009 and were considered fully at the time of the settlement. "That Triaxx seeks to resurrect this issue more than three years later says more about its litigation tactics than it does about the settlement," Patrick said.
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