Bank of America has settled a whopping lawsuit from investors: $8.5 billion to make up for the fact that it hid bad loans in packaged securities that it assured buyers included only mortgages of at least a certain grade.
This is the whole raison d'etre for the bank meltdown in 2007/2008, I should point out: the bundling of mortgages into hot securities that were then foisted on unsuspecting investors to hedge risk and raise funds for even more bad mortgages.
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