Tomahawk, WI 02/20/2014 (BasicsMedia) –  Bank of America Corp (NYSE:BAC) recently came up with a plan that would allow it tom finally reach a settlement agreement with some of its investors, who experienced losses when the housing crisis affected US. However, the agreement to pay the investors close to $8.5 billion for their losses was not without controversy. The bank saw its settlement plan head into stormy waters when AIG disapproved of it. The matter has been in the US courts for quite a while, but now seems to be over. The reason for celebration on the part of BAC is that the New York State Supreme Court has approved of the settlement plan, AIG’s concerns notwithstanding.

Bank of America Corp (NYSE:BAC) may feel elated with the news from the New York State Supreme Court. A closer inspection of the judgment made at the Supreme Court in regard to this case, reveals that Bank of America may have to contend with future lawsuits filed against it. Investors in the mortgage facilities offered through Bank of America, and who lost their investments, have been given a lifeline. They can come back later and file lawsuits against BAC, which could potentially be worth billions of dollars. If you consider that Bank of America already ahs to part with roughly $8.5 billion, then you realize that the amount could go higher than it is right now.

Currently, it is unclear as to how much money Bank of America will eventually pay to settle all claims filed against it. What the current case has done is that it has given Bank of America some breathing space. This ruling is another proof that the largest banks in the US, of which Bank of America is the second largest, are still a long way off from resolving the mess created in the mortgage industry. Mortgage crisis almost brought the US economy to its knees. If this had happened, Bank of America and other banks would be no more. Luckily, Bank of America has been making huge strides to rectify its image and business.

In 2013, Bank of America Corp (NYSE:BAC) had one of its strongest years since the global recession of 2009. This has not exempted BAC from murkier legal situations, from which it seems not to be near to resolving. No other investment decision has ever been costly to Bank of America as the decision to acquire Countrywide Financial in 2008 was. Since then, Bank of America has spent more time in court answering charges related to claims filed against it because Countrywide Financial backed loans taken using certain bonds, went into default thus giving way to huge losses. It is early to tell how long BAC will continue settling these huge losses incurred by investors.

In summary, Bank of America Corp (NYSE:BAC) seems to have won this round. The bank seems to have tackled the issues that AIG raised, well. Moreover, the New York State Supreme Court agrees with the plan mooted by Bank of America Corp (NYSE:BAC). This does not mean the cases have all been settled and that Bank of America will not spend more time in court, in as much as it has done in the past four to five years.

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