The Federal Deposit Insurance Corp. (FDIC) filed a petition against the $8.5 billion settlement related to losses on Bank of America MBS.

The FDIC's objection comes after a similar but seperate petition was filed earlier this month by a group of bond investors who claimed the settlement is unfair. The bond investors include the Walnut Place group of 11 buysiders, several federal home loan banks, pension funds, and insurers. They originally filed a petition to intervene in the New York state court, the report said.

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