Bank of America’s $8.5 billion settlement with holders in soured mortgage-backed securities is being challenged by a group of bondholders, Reuters reports. The group, which calls itself Walnut Place, has called the settlement with 22 institutional investors, including BlackRock, MetLife and Allianz, inadequate.

The North Carolina-based bank had agreed to pay $8.5 billion to settle claims by a group which lost money on mortgage-backed securities that were purchased from BofA’s unit Countrywide Financial. The settlement also requires the lender to improve its servicing operations.

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