Bank of America to Pay $8.5B

    Bank of America's corporate headquarters are shown in Charlotte, N.C., Thursday, July 15, 2010. (AP Photo/Chuck Burton)

    Chuck Burton / AP Photos

    Sources told The Wall Street Journal Tuesday that Bank of America has agreed pay $8.5 billion to high-profile investors who lost money on mortgage-backed securities, ending a nine-month court battle. These bonds were purchased before the U.S. housing market collapsed, and these 22 investors held more than $56 billion in the mortgage-backed securities at the center of the dispute. The deal could lead more mutual-fund managers, insurance companies, and investment partnerships to go after other U.S. banks for the billions earned in the housing-market collapse.

    Read it at The Wall Street Journal