So, what does it mean now that a New York state judge agreed to intervene in BofA's proposed $8.5 billion settlement with investors who lost money on mortgage-backed securities?  For starters, 11/17/11 is the date for a scheduled hearing on the settlement.

Justice Barbara Kapnick of the State Supreme Court in Manhattan granted the request, which was not opposed by BofA, BNY Mellon - the trustee that negotiated the accord with 22 investors, including BlackRock and Allianz SE's Pimco.  In doing so, Judge Kapnick has responded to those investors who object to the $8.5bn payout as being too low, and that the settlement extinguishes claims they might otherwise have against Bank of America.  New York Attorney General Eric Schneiderman also has expressed opposition.

BNY Mellon has contended that the settlement is fair, while Bank of America had hoped the accord would address many of its remaining liabilities from its 2008 purchase of mortgage lender Countrywide Financial Corp. 

The case is:  In re: The Bank of New York Mellon, New York State Supreme Court, New York County, No. 651786/2011.   [Reuters, 8/23/11]

C-I Note:  It's interesting that a New York judge can hold up what would appear to be a national issue.  President Obama even weighed in on the matter, saying that New York state's AG should step aside.  However, the case does reside in NYS, so that would indicate this ruling should stand.