Conn. Bank Hits Countrywide With Subprime Action

Law360, New York (January 31, 2011, 3:44 PM EST) -- Bank of America Corp. unit Countrywide Financial Corp. has again been accused of misleading investors into buying risky mortgage-backed securities, this time in a putative class action launched by Connecticut-based Putnam Bank.

Putnam Bank filed a complaint Thursday in the U.S. District Court for the District of Connecticut on behalf of a nationwide class of purchasers of a group of Countrywide mortgage pass-through certificates between August 2005 and September 2007.

The bank itself bought $33.3 million worth of the securitized mortgages, according to the complaint....
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