NEW YORK (Reuters) – Bank of America Corp has agreed to pay $375 million to settle a case brought by bond insurer Syncora Guarantee over toxic mortgage-backed securities at the center of the 2008 financial crisis.
Syncora sued Bank of America in 2009 to recover losses on securities transactions based on home loans made by Countrywide Financial, which was bought by Bank of America in 2008. Syncora said it was duped into insuring the mortgage-backed securities and that Countrywide misrepresented the quality of the underlying mortgages.
Syncora, a unit of Syncora Holdings Ltd, announced the settlement in a statement on Tuesday.
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