Forbes reports: Her $8.5 billion Bank of America settlement over bad mortgage deals was just the beginning. Now, backed by bond giants Pimco and BlackRock, Texas lawyer Kathy Patrick is gearing up for a new legal assault on the financial industry.
The biggest private legal settlement in the history of Wall Street was a few sentences away from death. In early June a little-known Texas lawyer named Kathy Patrick was putting the final touches on her carefully crafted $8.5 billion deal with Bank of America over so-called mortgage put-backs, when she got a last-minute demand from the other side. Sitting in her Houston office, Patrick learned that BofA wanted her clients—a clutch of the world’s most important investment firms, including BlackRock and Pimco—to promise they would not go after the bank with separate claims over the same mortgage pools…
Read more at http://www.forbes.com/sites/nathanvardi/2011/10/17/wall-streets-new-nightmare-the-next-wave-of-mortgage-backed-securities-claims/
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