BofA Paying $315 Million to Settle With BNP, Deutsche Bank
Bank of America Corp. agreed in March to pay a combined total of $315 million to settle lawsuits with Deutsche Bank AG and BNP Paribas Mortgage Corp. related to fraud losses at failed lender Taylor Bean & Whitaker Mortgage Corp.
The two European banks sued Bank of America in 2009 over asset-backed notes issued by a special-purpose entity known as Ocala Funding LLC, which financed loans originated by Taylor Bean. Bank of America served as collateral agent for the loans.
The Charlotte, North Carolina-based bank said in an April 29 regulatory filing that it settled “Ocala investor litigation” involving the two banks.
Renee Calabro, a spokeswoman for Deutsche Bank, confirmed the settlement. “Resolving these claims is a substantial achievement in our efforts to recover losses suffered on Ocala,” Calabro said in an e-mailed statement.
The BNP Paribas SA mortgage unit and Bank of America said in an April 1 filing in Manhattan federal court that BNP’s claims over the Ocala financing “have been fully resolved and settled,” and the case has been dismissed.
Bill Halldin, a spokesman for Bank of America, declined to comment on the settlement. The bank said in its quarterly report that the settlement payments were fully accrued as of Dec. 31.
The cases are Deutsche Bank v. Bank of America, 10-cv-08299, and BNP Paribas Mortgage Corp. v. Bank of America, 10-cv-08630, U.S. District Court, Southern District of New York (Manhattan).
Source: Bloomberg – BofA Paying $315 Million to Settle With BNP, Deutsche Bank
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