By Patrick Fitzgerald
Bank of America Corp. paid $315 million to settle a pair of
financial crisis-era lawsuits filed by Deutsche Bank AG and BNP
Paribas SA over who should be responsible for losses tied to the
multibillion-dollar fraud at disgraced mortgage lender Taylor Bean
& Whitaker Mortgage Corp.
Deutsche Bank's and BNP Paribas's mortgage units were investors
in notes issued by Taylor Bean's Ocala Funding unit, a mortgage
conduit. The two banks sued Bank of America, which acted as
middleman between the investors and Ocala, for $1.75 billion in
2009 over their losses on the notes.
A Bank of America spokesman declined to comment on the
settlement amount. Representatives for BNP Paribas and Deutsche
Bank couldn't immediately comment.
Bank of America said in a regulatory filing that the $315
million settlement was fully accrued as of Dec. 31, 2014. Earlier
this year, the bank had said in a filing that it settled with BNP
Paribas for an "amount not material to the corporation's results of
operations."
Write to Patrick Fitzgerald at patrick.fitzgerald@wsj.com
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