BankAmerica Corp. has reached an agreement to settle a lawsuit against the accounting firm of KPMG Peat Marwick, the last litigation remaining from student-loan defaults of the late 1980s.
Details of the settlement are confidential and are still being worked out, a BankAmerica spokesman said Monday.
The suit stems from the default of an estimated $450 million to $600 million in student loans issue by the California Student Loan Finance Corp. and serviced by United Education and Software.
BankAmerica served as indenture trustee for debt securities backed by the student loans.
In the suit, filed in 1989, BankAmerica claimed that Peat Marwick, the loan servicer's auditor, was responsible for the servicer's errors.
Earlier this year, BankAmerica settled a suit against it filed by a consortium of international banks that had issued letters of credit guaranteeing the debt securities.