CalPERS gets $249 million settlement from Bank of America

Posted 4 years 233 days ago ago by newspaper editor    1 Comments  0 Likes Like Dislike

Sacramento Bee -- CalPERS said Nov. 3 it has received a $249.3 million payment from Bank of America, the result of a settlement over toxic mortgage securities purchased by the pension fund during the housing bubble.

With the Bank of America settlement, the California Public Employees’ Retirement System said it has now recovered more than $500 million from its investments in bad mortgage securities.

“This is money that rightfully belongs to our members for their long-term retirement security,” said CalPERS Chief Executive Anne Stausboll in a prepared statement. “We’re glad that those who misled investors about the risks of mortgage-backed securities continue to compensate our members for their losses.”

In mid-September, CalPERS collected $88 million from Citigroup Inc. over similar investments.

The payout from Bank of America is in line with CalPERS’ earlier estimate of its share of a $16.6 billion settlement the bank made with federal authorities in August.

Besides the CalPERS sum, the settlement called for $50 million for CalSTRS, the teachers’ pension fund, and $500 million for homeowners with troubled mortgages by way of principal forgiveness and other forms of relief.

Bank of America borrowers are urged to call the bank’s settlement hotline at (877) 488-7814.


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  • Frank Weinstein 4 years 233 days ago
    How much money did CALPERS lose? B of A settled for $16.6 billion total ($500 million???? to CALPERS). I know what they are settling for, but how much did they steal or lie or whatever it is they did? Was it more than $16.6 billion? And what did CALPERS lose? I know they are getting $500 million, but how much did they lose to B of A?

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