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New York Attorney General Eric Schneiderman blew the whistle on a pending settlement between Bank of America and MBS investors worth $8.5 billion for Countrywide non-agency MBS issued before the financial crisis. Schneiderman last week filed a lawsuit against Bank of New York Mellon – a party to the settlement – for allegedly committing fraud while acting as trustee for MBS trusts securitized by BofA, and asked the court to reject the settlement proposal. “In negotiating the proposed settlement, BNYM labored under a conflict of interest because it stands ...