Settlement Will Add $23 Million To KY Retirement Systems

Because of a massive settlement, $23 million will be returned to the Kentucky Retirement Systems, or KRS.

Attorney General Jack Conway said that the money stemmed from a $16.65 billion settlement with Bank of America Corporation.

Kentucky and five other states were part of the settlement to resolve federal and state claims against Bank of America and its former and current subsidiaries, which include Countrywide Financial Corporation and Merrill Lynch.

Conway said the resolution marked the largest civil settlement with a single entity in American history.

“It was clear that Bank of America defrauded our pension system when it sold these high-risk products, and today we are holding them accountable," said Conway.

The state said its share of the money would help strengthen Kentucky’s pension system, and help cover a $21 million loss because of the risky mortgage-backed securities it purchased from Bank of America and its related companies.

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