Banks Drop Countrywide Suits Over More than $2B In RMBS

Law360, New York (October 24, 2012, 11:37 PM EDT) -- A California judge on Friday agreed to toss certain suits against Countrywide Financial Corp. and related entities, including parent Bank of America Corp., in which European banks and investors accused them of fraudulently overstating the quality of more than $2 billion in residential mortgage-backed securities.

U.S. District Judge Mariana R. Pfaelzer signed off on an Oct. 2 stipulation by the defendants and Stuttgart-based Landesbank Baden-Wurttemberg, which had sued Countrywide over more than $400 million in RMBS it had purchased, to dismiss the suit with prejudice. The...
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