CalPERS to recover millions in BoA settlement
The California Public Employees’ Retirement System (CalPERS) is poised to get back up to USD250 million in damages from Bank of America in a federal investigation settlement announced by California’s Attorney General.
This recovery would put CalPERS’ total recovery on losses sustained from investments in mortgage-backed securities at more than USD500 million.
"This settlement is another victory for our members and their families," says Henry Jones, chair of CalPERS’ investment committee. "By holding Bank of America accountable for its actions it returns hard earned money our members and employers contributed to the system."
Bank of America came under federal criminal investigation over its role in the 2008 financial crisis due to its misrepresentation of mortgage-backed securities it sold along with those sold by Merrill Lynch and Countrywide Financial, two companies it acquired in 2008.
"We are pleased with the continued leadership the US Department of Justice and the California Attorney General have taken on this issue to protect us, our members and other investors," says Jones.
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