NEW YORK Jan 31 A New York state judge on
Friday approved most of Bank of America Corp's $8.5
billion settlement with investors in mortgage securities, which
would resolve much of the bank's liability from its acquisition
of Countrywide Financial Corp during the financial crisis.
Justice Barbara Kapnick ruled that Bank of New York Mellon
, the trustee overseeing the securities, had acted
reasonably in determining that the settlement was in the best
interests of the investors. Kapnick made one exception to her
ruling, saying the trustee had not acted reasonably in settling
certain loan modification claims brought by the investors.
"This court finds that, except for the finding ... regarding
the loan modification claims, the trustee did not abuse its
discretion in entering into the settlement agreement and did not
act in bad faith or outside the bounds of reasonable judgment,"
Kapnick wrote in her ruling.