Bank of America Faces Billions in Losses Over Countrywide Scandal
Stockholders for Bank of America Face Risk of Loss
Essentially, the insurance companies bought into paper with AAA ratings attached that declined. The lawsuit details several incidents brought to light during the Countrywide lawsuits that proved risks for sale did not carry proper disclosures. The companies relied upon the excellent ratings and ended up with paper that carried debt-to-income ratios as high as "403%."
The assets involved in the lawsuit are worth billions of dollars. The exact losses haven't been released yet, but the assets reported as originated involve over $6 billion over a period of several years.
Bank of America stock holders face potential losses as a result of this lawsuit. Treble damages may be awarded if intentional, willful fraud is committed. The attorneys for the case have not inserted an exact dollar value for the relief asked for, but this number is expected to be released in the future.
The attorneys for the plaintiffs are: Gerald H. Silk, David L. Wales, Jai K. Chandrasekhar, Lauren A. McMillen, Justinian Doreste, and Blair Nicholas of Bernstein Litowitz Berger & Grossmann LLP. A call to their offices in New York went to an automated system. A list of their cases can be found at: http://www.blbglaw.com/cases/index
The original source URL for the filing as posted online is:
http://www.scribd.com/doc/47494051/Life-Insurance-Companies-v-Countrywide-filed-Jan-24-2011
The Supreme Court of the State of New York received a 194-page filing that includes nine causes of action and five exhibits. Normally, such documents aren't news stories until a party involved publicizes it. Here is the trail:
1. The document was originally uploaded to Scribd.com by Member "abcabcabc123123123"
2. It was recast at the Market-Ticker.com website by Karl Denninger in his Foreclosuregate blog at 6:41 p.m..
3. The End the Fed group then picked up the URL and forwarded it to its e-mail groups.
Resources:
abcabcabb123123123 "Life Insurance Companies v Countrywide - filed Jan 24 2011"
Denninger, Karl. "And Now, For The Real Sh$%show...."
Published by Amy Barnes
Educated in: Psych., Computers & Programming, Criminal Justice, Accounting. Career experience: policing, retail, digital media production (15yrs), web design, tech support, psychology, social services, te... View profile
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