NEW YORK (Reuters) - Bank of America Corp. is close to an agreement to pay $ 8.5 billion to settle the claims of a group of powerful investors who lost money on mortgage-backed securities, a source familiar with the process said on Tuesday.
The colony, the first by the Wall Street Journal, would be the largest such amount in the banking sector to date. The agreement would have to be approved by the Council of the Bank, which met Tuesday to discuss the source function.
The largest US Bank by assets combat claims by a group of 22 investors housing-related securities it packaged and sold before the financial crisis. The Group of investors includes BlackRock Inc., MetLife Inc. and the New York Federal Reserve Bank.
The source of the settlement extends beyond the action brought by the first group of investors, said and could address "significant parts" of the exposure of the Bank to repurchase claims from private investors.
Bank of America was not immediately available for comment Tuesday.
BlackRock has refused to comment on.
Shares of Bank of America has increased about 3.5% in the trade after hours Tuesday after news of the settlement agreement was reported.
(Reporting by Maria Aspan in New York and Joe Rauch at Charlotte;) (Editing by Carol bishopric and Tim Dobbyn)
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