New Countrywide Lawsuit For Bank Of America

NEW YORK -- Bank of America Corp. is facing a new lawsuit filed by a group of shareholders of mortgage giant Countrywide Financial Corp., which the bank bought in 2008.

The group of investors, which include BlackRock funds, T. Rowe Price Group Inc., TIAA-CREF and several pension funds including the California Public Employees' Retirement System had earlier rejected a $624 million settlement struck last year deal, saying the terms were inadequate. The lawsuit accused Countrywide of misleading shareholders about its finances and lending practices.

Blair Nicholas, a partner at the law firm Bernstein Litowitz Berger & Grossmann, representing the investors said they will present their claims before a jury. Bank of America spokesman Lawrence Grayson said: "We intend to vigorously defend these claims."

Comments

[dcom107]

07:22 PM on 08/04/2011

Countrywide gave me $ 313,000 and didn't care my income couldn't sustain that note every month .

[BigDaddyWow]

12:07 AM on 08/02/2011

Countrywide actually makes Goldman Sachs seem OK. Why Angelo Mozillo is not in federal prison with Madoff is a true outrage.

[dkmkc2000]

11:47 PM on 08/01/2011

Both Countrywide and Bank of America fooled the homeowners. It's the homeowners that should be sueing both of them for pulling the rug out from under them. Fannie Mae and Freddie Mac
made it too easy for these banks to scam out millions of American's from their homes.

[ADVOCATE4ZPG]

07:09 PM on 08/02/2011

Still, "Murkans" should have learned from the Enron business, the IPO scam--and even the Great South Seas Bubble (1720 approx.) that PRICES must be rationally connected to VALUE, specificially, housing prices couldn't increase at rates far exceeding personal, income growth, population growth--not to mention 'utility'--but for so long. And the U.S. has a long tradition of specifically REAL ESTATE busts going back to the 1830s and Credit Immobilier (The reason for the French name is researchable--but naught to do with the French.....) Alexis de Toqueville commented extensively on the frenzy he observed....

Sadly, even the tulip bubble (in 17th Century Holland) might have been instructive: Only the first in-and-out skim the pot; the trusting and lethargic climb on just at the bursting point....

By the way, if these "Murkans" had not paid off the mortgage, they really didn't own them.....

[dkmkc2000]

10:45 PM on 08/02/2011

Didn't realize it goes that far back, and seeing the results of the stock market slipping even further today does not help.

[garymc8]

06:11 PM on 08/01/2011

3 BRANCHES OF US GOVERNMENT:
Corporate
Corporate
And Corporate

[Tarpon22]

12:58 PM on 08/01/2011

MOVE YOUR MONEY.
What are you all still doing at BofA.

I got out 2 years ago and went to Credit Uion, my god what a difference.
When I closed my checking account at BofA, they could not give me my cash.
They issued me a check and said they could not give me cash.
I asked why?

The woman said because everyone is pulling out cash.

MOVE YOUR MONEY

Ron Paul 2012

[vinyl1]

09:33 PM on 07/31/2011

This lawsuit does not make any sense. If BofA had not bought CW, they would have gone bankrupt Now the stockholders of CW are suing BofA for the stupid practices of CW. This has to be the dumbest acquisition of all time.

[greyhound2]

09:48 AM on 08/01/2011

And to top it off, the CEO of failed Countrywide walked out the door with a $32 million golden parachute!

[ADVOCATE4ZPG]

07:14 PM on 08/02/2011

Probably, paying income tax at only the 15% (capital gains) rate. The Simpson-Bowles commission RECOMMENDED (look it up!) that capital gains be taxed as ordinary income. They recommended lowering the top rate and consolidating six brackets to three. Better to keep the brackets as is and raise the top rates to 47% until/and unless the U.S. national debt is paid down.

While they're at it, "reformers" might consider extending the holding period for capital gains and eliminating the egregious treatment of "carried interest" as CG.....

[moose and squirrel]

05:53 AM on 08/02/2011

b of a knew CW was a fustercluck.  their only move was to buy it before it took them down, and hoping they could find a way to fix the mess internally.  i hope they go down hard.

[anastasiabeaverhousen]

08:44 PM on 07/31/2011

Credit Unions. Plain and simple.

[Jobu54]

06:00 PM on 07/31/2011

This is a lawsuit of big corporations against big corporation. Our 3 branches of government will again be totally confused about this one. If this were consumers bringing the suit, the judiciary would come up with some nonsense that the consumers did not have legal standing or some similar crap and dismiss the suit. But corporations against each other? If this got to the supreme court, the justices who are beholden to the wealthy and corporations would screw themselves into the ground trying to not offend either side.

[knewsreply]

05:28 PM on 07/31/2011

A little slow coming, but better than never?

[james rimes]

02:24 PM on 07/31/2011

Kathy at Gibbs & Bruns LLP has already lit this trail on FIRE!!

[oftenon]

11:35 AM on 07/31/2011

First, calling HP proofreaders: "settlement struck last year deal?"

Plaintiff Investors: here's an instance where Liz Warren scruples might come in handy, do ya think?

[spkninglsh]

11:09 AM on 07/31/2011

I hate banks, it's just that simple.

http://www.youtube.com/watch?v=ptAfpN8ydyM

[fortressfountain]

09:31 AM on 07/31/2011

Except the gov. already owns the banks-what regulation?
This is a joke-that anyone would do business with this bank and that the doors are not closed.
So money must be being made through lawsuits and such as this bank does not have a negative number on the exchange.
This whole country is such a joke it should be on the entertainment section.

[DK NY]

08:38 AM on 07/31/2011

Banking system in US is discouraging. If nothing else, at-least the cheque books should be free, at-least once is 2-3 years if not more.

[woody7]

08:53 PM on 08/01/2011

add wells to the list..............................

[kokobell616]

06:21 AM on 07/31/2011

BofA has a new slogan. 'Our fees reflect our lawsuits'.