Suit charges Countrywide with ‘massive fraud’

By Dow Jones Newswires
Posted Jan. 25 at 10:00 a.m.

Countrywide Financial, a unit of Bank of America Inc., conducted a “massive fraud” over its mortgage-backed securities, according to a lawsuit brought by investors, including TIAA-CREF Life Insurance Co., New York Life Insurance Co. and Dexia Holdings Inc., Bloomberg News reported Tuesday on its Web site.

About a dozen institutional investors filed the suit Monday in New York state Supreme Court.

“Countrywide was an enterprise driven by only one purpose — to originate and securitize as many mortgage loans as possible into MBS to generate profits for the Countrywide defendants without regard to the investors that relied on the critical, false information provided to them with respect to the related certificates,” according to the complaint.

Among those named as defendants were Countrywide Home Loans Inc., Bank of America, former Countrywide CEO Angelo Mozilo and other former executives.

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One comment:

  1. Michael Piet Jan. 25 at 10:37 a.m.

    And should Chris Dodd be investigated since he received sweetheart mortgage deals while in office?