FDIC Objections To $500M Countrywide Settlement Overruled

Law360, Los Angeles (October 28, 2013, 9:49 PM EDT) -- A California federal judge on Monday tentatively gave approval to Bank of America Corp. unit Countrywide's $500 million settlement of three class actions related to mortgage-backed securities, overruling the Federal Deposit Insurance Corp.'s objections that the deal was not fair to all class members.

The FDIC, acting as the receiver for failed banks that invested in the securities, had attempted to derail the deal by arguing that it was only one-tenth the amount of average class action settlements in residential MBS cases, and that it would...
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