A new ruling yesterday in the U.S. District Court for the Southern District of New York has commingled three mortgage lawsuits against Bank of America (BofA) into one big legal effort, with a Pennsylvania pension fund taking the lead.

In a June 20 filing, District Court Judge William Pauley listed as background that the plaintiffs allege the banking conglomerate partook in "two primary types of misconduct." He noted that the first touched on BofA engaging in a practice called "dollar rolling," where it transferred MBS "to another entity, with the understanding that BofA would repurchase them after it had issued its quarterly financial statement."

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