FDIC Suit Over $108M In Countrywide MBS Has Legs: Judge

Law360, New York (January 4, 2013, 7:39 PM EST) -- The Federal Deposit Insurance Corp. can't go after Bank of America Corp. but can pursue its affiliate Countrywide Financial Corp. and UBS Securities LLC for allegedly misrepresenting $108 million worth of mortgage-backed securities they sold to a now-defunct Colorado bank, a California federal judge ruled Thursday.

U.S. District Judge Mariana R. Pfaelzer said the FDIC's amended complaint was viable for allegations that Countrywide and UBS violated Colorado state law when they allegedly hid problems with the Countrywide securities they sold to United Western Bank, which the...
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