2011-08-08bloomberg.com

``Bank of New York Mellon Corp. (BK) violated state law in its role representing investors in mortgage securities created by Bank of America Corp. (BAC)'s Countrywide Financial unit, the New York Attorney General said... BNY Mellon's conduct as trustee violated the state's Martin Act by misleading investors, Schneiderman said in court papers filed yesterday. The bank engaged in "repeated fraud and illegality," Schneiderman said. New York's Martin Act allows the attorney general to file civil lawsuits and criminal charges in securities-fraud cases... The attorney general's action "raises significant doubt" that the $8.5 billion settlement will move forward as proposed, JMP Securities said in a research note.''


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