Countrywide Lawsuit

Bank of America subsidiary Countrywide financial has been hit with another lawsuit for misrepresenting the quality of securities it had been selling to investors prior to the financial melt down.

The lawsuit filed by a group of investors that include New York Life Insurance Co. as well as TIAA-CREF accuses Bank Of America of massive fraud related to the sale of mortgage securities.

The investors behind the lawsuit were led to believe that they were purchasing conservative investments that posed very little risk instead of the high risk loans that eventually led to significant losses for the investors.

 

 

Ratings for 90% of the Bank Of America countrywide bonds has been reduced to junk status despite their previous AAA rating.

 

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