It appears investors are ready to do battle against Bank of America Corp. (NYSE:BAC) and Pimco, which are in negotiations which could weaken the leverage opponents would have in payback demands over failed mortgage loans.
Included in the fight would be the Federal Reserve Bank of New York, Freddie Mac and Blackrock Inc.
This all stems from an announcement in December by the Pimco group that they had started communicating with Bank of America (BAC) over the quality of loans as they were packaged into bonds for sale to investors.
The dialogue appears to have weakened the former litigious atmosphere, which could lead to the problem being worked out.
Others affected by the mortgage loans are concerned if the two settle it could set a precedent which would undermine their ability to extract more from Bank of America.
Lawyers stand to lose a lot as well, and obviously aren't going to let this rest without a fight.
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