Allstate Sues BofA, Others Over Countrywide Losses

[KeepItReal]

Source: Reuters/CNBC

Allstate has sued Bank of America and 18 other defendants over losses it said it suffered on more than $700 million of mortgage debt it bought from Countrywide Financial.

Countrywide was once the largest U.S. mortgage lender. Bank of America bought the company in July 2008.

In a complaint filed Monday in Manhattan federal court, Allstate the largest publicly traded U.S. home and auto insurer, alleged that Countrywide misled it into believing the securities it bought were safe, and that the quality of residential home loans backing them was high.

"Defendants knew the loans offloaded onto Allstate were a toxic mix of loans given to borrowers that could not afford the properties, and thus were highly likely to default," the complaint said. Allstate suffered "significant losses" as a result, the complaint said.

Read more: http://www.cnbc.com/id/40829855

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These firms sold bad mortgages to individuals and then had the nerve to package them up as "securities".

http://ml-implode.com/fulllist.html#lists

[Angry Dragon]

1. Prison terms and taking personal fines would solve a lot of this problem

[DeSwiss]

6. Damn straight it would.

- K&R

[aquart]

2. I can't help but enjoy this.

[Ruby the Liberal]

3. And so it begins

I have been waiting for the investor lawsuits to start.

[madrchsod]

4. oh no... there`s a fight on the playground....

anyone placing bets?

[lunatica]

5. And thus they begin the feeding frenzy to see who gets the most

All I can say is good. May they all sue the shit out of each other and lose billions.

[dixiegrrrrl]

9. Wish I could buy stock in the lawyer's firms. THEY will be raking in the money.

Still,it IS heartwarming to watch, no?

[dmr]

7. I've been waiting for something like this to happen.

They'll prob settle out of court to 'protect' their socially productive 'reputations'.

It's not funny! :rofl: It's not!

[Tatiana]

8. I hope other entities that bought these toxic securities follow Allstate's lead.

This may be our only opportunity to get some justice served, given the fact that corporations like Allstate have the financial backing and incentive to actually follow through with making the BOAs of this crisis pay (literally).

[dixiegrrrrl]

10. Many many many suits against BOA.

Dec 7, 2010...........
The U.S. Securities and Exchange Commission said it sued Bank of America Corp.’s Banc of America Securities LLC for securities fraud, alleging an effort to rig bids in connection with the investment of proceeds of municipal securities.
http://www.bloomberg.com/news/2010-12-07/sec-sues-bank-of-america-on-muni-securities-bidding-practices.html



Wed Sep 29, 2010 Ambac Financial Group Inc (ABK.N) sued Bank of America Corp (BAC.N), alleging a "massive fraud" that caused it several hundred million dollars of losses from insuring mortgage securities that went sour.

* 'Massive fraud' alleged over mortgage securitizations

* Countrywide allegedly misleading over loans, guidelines

* Shares of Bank of America, Ambac fall
http://www.reuters.com/article/idUSN2927683320100929

Everybody seems to be suing BOA, from ripped off homeowners to huge trust funds to other banks to even Fannie Mae.
I just googled " Sues BOA" and found stories going back to 2008.

Might be a good time to short BOA, for those who gamble in the market.

[defendandprotect]

11. ... and Congress didn't know all of this? And the financial watch dogs?

[DCKit]

12. Well, if we can't get justice from the courts, the other sharks in the pool will feed on 'em. nt