New York and Delaware won their bids to intervene in litigation over Bank of America Corp.'s proposed $8.5 billion settlement with mortgage-bond investors, Bloomberg News reported yesterday. New York State Supreme Court Justice Barbara Kapnick yesterday granted motions by the attorneys general of the states to intervene in the case over the objections of an investor group. New York Attorney General Eric Schneiderman and Delaware Attorney General Beau Biden "have identified legitimate quasi-sovereign interests at play" in the case, Kapnick wrote. The judge also said that she is not persuaded by arguments that the intervention would delay or burden the proceeding. The settlement would resolve claims from investors in Countrywide Financial Corp. mortgage bonds. Bank of America acquired the mortgage lender in 2008. Bank of New York Mellon Corp., as trustee for investors, is seeking approval of the deal in state court.
