Countrywide Dodges Securities Suit Over $62.6M RMBS Sale

Law360, San Diego (November 26, 2012, 11:38 PM EST) -- A California federal judge on Wednesday tossed claims brought by the Federal Deposit Insurance Corp. as part of multidistrict litigation over residential mortgage-backed securities, dismissing as time-barred the FDIC’s allegations that Countrywide Financial Corp. violated federal securities law by issuing faulty RMBS to a now-defunct bank for $62.6 million.

U.S. District Judge Mariana Pfaelzer, who is overseeing the FDIC’s suit filed in May as receiver for Strategic Capital Bank, agreed with Countrywide’s argument that the one-year statute of limitations for claims under the Securities Act of...
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