New York Fed and bond investors gear up for a battle on MBS

10/26/2010 | Bloomberg

The Federal Reserve Bank of New York, BlackRock and other bond investors have hired Kathy D. Patrick, a Houston lawyer described as "fearless and tenacious," to represent them as they battle Bank of America on mortgage-backed securities. The investors said the MBS did not meet contractual promises about their quality. Patrick is known for reaching a quick settlement. If Bank of America settles, the case might spur more buybacks in the market of nonagency mortgage securities.

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