Benzinga Radio: Insights on the Bank of America Settlement from Bill Black and Edward Lewis

Benzinga Radio's Luke LaVanway and Matthew Boesler spoke with Bill Black, former litigation director of the Federal Home Loan Bank Board and previous holder of other senior federal regulatory roles, and Edward Lewis, partner at Atlantic Equities, to discuss the proposed Bank of America settlement that was announced this week. Bank of America stock is up 3% following the announcement – is this positive reaction justified? While the $8 billion figure is cheap compared to the potential liability of BofA's $425 billion loan portfolio, “it certainly doesn't resolve anything on the part of the FCC, which could bring aider-and-abettor suits,” Black said. There is a distinct possibility of additional investor suits as well. Nevertheless, Black calls the settlement a “coup” for BofA, as it resolves claims with the most sophisticated large holders of the securities in question. Lewis still advises a cautious perspective on the stock:

We covered a lot more in the discussion, so be sure to check out the full podcast below.