Countrywide Was ‘Flying Blind’ Before $4B BofA Deal: Atty

Law360, New York (September 1, 2011, 3:02 PM EDT) -- An attorney for a hedge fund suing Countrywide Financial Corp. on Thursday told the Second Circuit that top Countrywide brass had admitted in an email that they were “flying blind” while hiding the company’s troubles from investors to promote a $4 billion merger with Bank of America Corp.

SRM Global Fund LP, which lost 90 percent of its investments in the company, alleged that Countrywide and Bank of America deceived the market about the mortgage lender’s staggering losses in while it touted the merger, but a...
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