CalPERS Receives $249M from Bank of America Settlement

The California Public Employees’ Retirement System (CalPERS) has received $249.3 million in damages from Bank of America.

Bank of America agreed in August to a settlement of Securities and Exchange Commission (SEC) claims related to its sales of mortgage-backed securities. At that time California Attorney General Kamala D. Harris announced California would recover $300 million in damages, which will reimburse CalPERS and the California State Teachers Retirement System (CalSTRS).

In September, CalPERS received more than $88 million as part of a global settlement reached by government officials with Citigroup over its mortgage-backed securities practices. CalPERS said in total it has recovered more than $500 million on losses the fund sustained from investments in mortgage-backed securities.

“This is money that rightfully belongs to our members for their long-term retirement security,” says Anne Stausboll, Chief Executive Officer for CalPERS. “We’re glad that those who misled investors about the risks of mortgage-backed securities continue to compensate our members for their losses. We thank the California Attorney General’s Office and the U.S. Department of Justice for their diligent efforts.”