NEW YORK (CBSNewYork/AP) — New York state is getting $800 million as its share of a national $16.65 billion settlement with Bank of America over its role in the sale of mortgage-backed securities in the run-up to the financial crisis.
New York Attorney General Eric Schneiderman announced the settlement Thursday. He says the bank has agreed to pay the state $300 million in cash and $500 million in the form of direct relief to consumers.
“Since my first day in office, one of my top priorities has been to pursue accountability for the misconduct that led to the crash of the housing market and the collapse of the American economy,” Schneiderman said in a statement. “This historic settlement builds upon our work bringing relief to families around the country and across New York who were hurt by the housing crisis, and is exactly what our working group was created to do. The frauds detailed in Bank of America’s statement of facts harmed countless of New York homeowners and investors. Today’s result is a major victory in the fight to hold those who caused the financial crisis accountable.”
As part of the agreement, Bank of America acknowledges that it and its subsidiaries made “serious misrepresentations” to the public about mortgages and mortgage-backed securities, Schneiderman said.