Six Federal Home Loan banks have launched a salvo against Bank of America Corp.'s proposed $8.5 billion mortgage bondholder settlement, suggesting the payout may need to be triple that amount.

In a brief filed Thursday with Justice Barbara Kapnick of the New York State Supreme Court, attorneys for the six Federal Home Loan banks (FHLB) argue that research reports used to determine the settlement figure were too favorable to BofA, used faulty estimates from the Charlotte, N.C., bank and "raise more questions than they answer."

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