NEW YORK (Reuters) - A New York state judge on Friday approved most of Bank of America Corp's $8.5 billion settlement with investors over toxic mortgage securities, but left a caveat that could complicate the bank's efforts to implement the deal.
Justice Barbara Kapnick ruled that Bank of New York Mellon , the trustee representing investors, had acted mostly in good faith in agreeing to the settlement. But she withheld her approval for one part of the settlement where she said the trustee had not acted reasonably.
A spokesman for Bank of America said the bank did not expect that Kapnick's exclusion would hold up the accord.
But a lawyer for American International Group Inc, which led investors that opposed the settlement, said the insurer foresees a long legal fight ahead.
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