If Bank of America Corp.'s proposal to settle its MBS claims for $8.5 billion is approved as is by a court, the deal would provide the template for other banks to clean up their own MBS messes.

That is certainly still an if, as a judge would have to make the settlement binding on an unknown portion of investors who did not participate in the negotiations. But it has a good shot, because it serves several powerful interests.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.