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Pimco Calls $8.5 Billion BofA Settlement ‘Outstanding’

Bank of America Corp.’s $8.5 billion mortgage-bond settlement is “outstanding” for investors, said a Pacific Investment Management Co. executive, who defended the deal against opposition.

The settlement was reached after an investor group that included Pimco and BlackRock Inc. at first demanded $12 billion, eventually coming down to a “take it or leave it” offer of $8.5 billion, Kent Smith, an executive vice president at Newport Beach, California-based Pimco who helped negotiate the agreement, testified yesterday.