FDIC Wants 9th Circ. To Block $500M Countrywide MBS Deal

Law360, New York (January 16, 2014, 1:10 PM EST) -- The Federal Deposit Insurance Corporation on Wednesday said it will appeal to the Ninth Circuit Bank of America Corp.'s $500 million settlement of class actions over Countrywide Financial Corp.’s underwriting standards for mortgage-backed securities.

The appeal comes on the heels of U.S. District Judge Mariana R. Pfaelzer’s December approval of the deal, which includes $85 million in fees to the plaintiffs’ attorneys and litigation expenses of nearly $3 million.

The FDIC laid out its rationale for the rejection of the deal in October, arguing that the...
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