Bank of America needs more than Warren Buffet’s endorsement to get back on track. Warren Buffet has provided Bank of America with a $5 billion dollar vote of confidence. The billionaire’s deposit of $5 billion did cause the banks stock shares to increase slightly. However, the bank needs more than Mr. Buffet’s vote to get back into the positive side of banking news.

Warren Buffet is an American business magnate, investor, and philanthropist. He is widely regarded as one of the most successful investors in the world.

Bank of America’s liability over the bank’s mortgage foreclosure related lawsuits still leaves consumers with a ton of uncertainty for one of the largest banks in the nation. Bank of America has seen more than its share of bad news since their federal bailout. In addition to selling their share in China Construction Bank to bring in $8.3 billion with an after tax gross of $3.3 billion,  the bank still needs some help to install a renewed since of consumer confidence.

The banks federal lawsuit involving some of their mortgage related loans will help with rebuilding the confidence consumers had in the bank’s glory days. The FDIC or Federal Deposit Insurance Corporation is standing in the way of some of the uncertainty tainting Bank of America’s cost of their mortgage related lawsuits.

Bank of America is attempting to settle with mortgage bond holders for $8.5 billion and the FDIC has filed an objection to the settlement. The settlement is with Bank of America and 22 investors. The investors include PIMCO, the Federal Reserve Bank of New York and BlackRock. The FDIC’s objection is a wrench in Bank of America’s efforts to leave their mortgage problems behind them.

Bank of America is one of the largest bank in America. Since the 2009 financial crisis resulting in a federal bailout, the bank had been struggling to regain consumers' confidence.

The FDIC has outlined in their objection that they are the receiver of numerous banking entities as well as the owner of many certificates that have been issued by numerous trusts that would be covered by the settlement. The agency has advised they don’t have enough information to evaluate the proposed Bank of America settlement. Several parties in the case have advised more information is needed to verify if the settlement is reasonable.

Bank of America’s Countrywide unit made billions at private investor’s expense last year. The argument is that billions were made because Countrywide continued to service bad loans while they ran up service fees. In October of last year the private investor group sent BofA (Bank of America) a letter that demanded the repurchase of soured mortgage securities created by Countrywide practices.

Initially BofA stated the claims were baseless and Countrywide practices were sound and the issues identified stemmed from the economic downturn not problems with their mortgages. In June, after reconsideration BofA stated it would settle the claims.

The Attorney General of New York, Eric Schneiderman is also trying to block the settlement with BofA. Early this month he urged a state judge to reject the proposal and called it unfair. The Bank of New York Mellon is the trustee representing the investors and has been named by Eric Schneiderman as committing fraud because they have failed to ensure the mortgage securities were created in accordance with state law and failed to act in the best interest of all of the investors overall.

At this time Bank of America is still seeking to rebuild their consumer relationship and their niche in the industry. Possibly with the lawsuit behind them they can see a ray of sunshine. Although having a billionaire invest $5 billion doesn’t hurt any bank, it takes a little more to recover from such a sordid affair as the banking industry has seen in recent years.