BofA Ignored Countrywide's Bad Mortgage Practices: Suit

Law360, New York (September 28, 2011, 3:27 PM EDT) -- A Bank of America Corp. shareholder alleged Wednesday in New York federal court that the company’s top brass knew of alleged robosigning of foreclosures and a host of other mortgage-related irregularities when it acquired Countrywide Financial Corp. but ignored them, exposing it to major liabilities.

Richard Delman’s derivative suit accuses Bank of America’s executives and board members of turning a blind eye to red flags in its mortgage portfolio following its purchase of Countrywide in 2008, a failure that precipitated the bank’s alleged robosigning, or automatic...
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