SACRAMENTO, CA – The California Public Employees’ Retirement System (CalPERS) has received $249.3 million in damages from Bank of America, the result of a federal investigation settlement announced in August by California Attorney General Kamala Harris.
This puts CalPERS total recovery on losses the Pension Fund sustained from investments in mortgage-backed securities at more than $500 million.
“This is money that rightfully belongs to our members for their long-term retirement security,” said Anne Stausboll, Chief Executive Officer for CalPERS. “We’re glad that those who misled investors about the risks of mortgage-backed securities continue to compensate our members for their losses. We thank the California Attorney General’s Office and the U.S. Department of Justice for their diligent efforts.”
Bank of America came under federal criminal investigation over its role in the 2008 financial crisis due to its misrepresentation of mortgage-backed securities it sold, along with those securities sold by two companies it acquired in 2008, Merrill Lynch and Countrywide Financial.
CalPERS is the largest public pension fund in the U.S., with approximately $290 billion in assets. CalPERS administers health and retirement benefits on behalf of 3,090 public school, local agency, and state employers. There are more than 1.6 million members in the CalPERS retirement system and more than 1.3 million members in its health plans. For more information about CalPERS, visit www.calpers.ca.gov.