Bank of America to Pay $8.5B

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.