CalPERS to Recover Millions in Bank of America Settlement
August 21, 2014
External Affairs Branch
Robert Udall Glazier, Deputy Executive Officer
Brad Pacheco, Chief, Office of Public Affairs
Contact: Joe DeAnda, Information Officer
SACRAMENTO, CA – The California Public Employees’ Retirement System (CalPERS) is poised to get back up to $250 million in damages from Bank of America in a federal investigation settlement announced today by California Attorney General Kamala Harris.
This recovery would put CalPERS, total recovery on losses sustained from investments in mortgage-backed securities at more than $500 million.
"This settlement is another victory for our members and their families," said Henry Jones, Chair of CalPERS Investment Committee. "By holding Bank of America accountable for its actions it returns hard earned money our members and employers contributed to the system."
Bank of America came under federal criminal investigation over its role in the 2008 financial crisis due to its misrepresentation of mortgage-backed securities it sold along with those sold by Merrill Lynch and Countrywide Financial, two companies it acquired in 2008.
"We are pleased with the continued leadership the U.S. Department of Justice and the California Attorney General have taken on this issue to protect us, our members and other investors," said Jones.
CalPERS is the largest public pension fund in the U.S., with approximately $300 billion in assets. CalPERS administers health and retirement benefits on behalf of 3,090 public school, local agency, and state employers. There are more than 1.6 million members in the CalPERS retirement system and more than 1.3 million in its health plans. For more information about CalPERS, visit www.calpers.ca.gov.