Citi Comments On Bank Of America Press Reports

According to Citi, Bank of America BAC is nearing a settlement with Gibbs & Bruns representing an investor group as owners of MBS securities. Citi said that key points from the press are, “1) the settlement is for $8.5 bil, 2) the proceeds of the settlement would go to the trustee to be distributed on behalf of all the bondholders of MBS, and 3) the deal covers $424 billion of the $963 billion non agency MBS originated during 2004-2008.” Bank of America closed yesterday at $10.82.