Wednesday's Headlines: Bank of America settlement challenged by NY AG

New York Attorney General Eric Schneiderman is investigating client information tied to Bank of America's $8.5 billion mortgage settlement, Bloomberg and other media report, indicating that the deal may be challenged in court.

Schneiderman is inquiring whether public agencies or state-affiliated pension funds were included in the settlement. There already have been objections to the settlement from mortgage bond investors who complained about the fairness of the deal, The Wall Street Journal reports.

Other News:

Investment advisor performance fees raised by SEC. [MarketWatch]

Hedge fund investments seen reaching $195 billion next 12 months, report says. [Hedge Fund Net]

Options trading boosts US equity derivatives activity to ninth annual record. [Bloomberg]

Standard & Poor's says banks may still get major support despite Dodd-Frank. [Wall Street Journal]

Senators want close tax loophole for American credit default swaps traders. [New York Times]

Dodd-Frank fails to end egregious compensation for bankers. [DealBook]