{"id":5120,"date":"2011-03-10T00:00:00","date_gmt":"2011-03-10T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2011\/03\/countrywide_finance_corp_and_t"},"modified":"2022-04-04T12:54:44","modified_gmt":"2022-04-04T17:54:44","slug":"countrywide-finance-corp-and-t","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/countrywide-finance-corp-and-t\/","title":{"rendered":"Countrywide Finance. Corp, UBS Securities LLC, and JPMorgan Securities LLC Settle Mortgage-Backed Securities Lawsuit Filed by New Mexico Institutional Investors for $162M"},"content":{"rendered":"

New Mexico\u2019s State Investment Council and Public Employees Retirement Association have settled their securities lawsuit with Countrywide Finance Corp. and two underwriters for $162 million. These details, from the confidential settlement agreement, were was obtained by the Albuquerque Journal <\/em>through an Inspection of Public Records request.<\/p>\n

The Countrywide investments were made up of mortgage-backed securities that the company had written. JPMorgan Securities<\/a> and UBS Securities LLC <\/a>were the two underwriters.<\/p>\n

The securities were obtained through securities lending, which involved the SIC lending one batch of securities in return for another batch that paid a slightly higher interest rate. Although securities lending is generally considered safe for institutional investors like the SIC and PERA, mortgage-backed securities played a key role in the recent financial collapse. Even now, since the market has rebounded, the Countrywide securities are still worth less than what the state got.<\/p>\n

In their institutional investment fraud lawsuit<\/a>, the SIC and PERA accuse the defendants of disregarding their own underwriting guidelines and dumping the securities on investors, including the state of New Mexico, \u201cto generate high volume loan business regardless of credit risk.\u201d The New Mexico agencies opted to file their complaint in state court instead of taking part in a class-action lawsuit with other US states.<\/p>\n

Of the $162 million, $149 million goes to SIC, PERA gets $6 million, the Educational Retirement Board receives $100,000, and the lawyers hired by the state are to receive $7 million. Bank of America bought out Countrywide in 2008.<\/p>\n

Related Web Resources:<\/strong><\/p>\n

Countrywide sued by 3 New Mexico funds, Pensions & Investments<\/a>, Pension and Investments, August 20, 2008<\/p>\n

New Mexico State Investment Council <\/a><\/p>\n

New Mexico Educational Retirement Board<\/a><\/p>\n

More Blog Posts:<\/strong>
\nBank of America and Countrywide Financial Sued by Allstate over $700M in Bad Mortgaged-Backed Securities<\/a>, Stockbroker Fraud Blog, December 29, 2010<\/p>\n

Countrywide Financial, Merrill Lynch, and Citigroup Executives Defend Their Hefty Compensations Following Subprime Mortgage Crisis<\/a>, Stockbroker Fraud Blog, March 12, 2008<\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

New Mexico\u2019s State Investment Council and Public Employees Retirement Association have settled their securities lawsuit with Countrywide Finance Corp. and two underwriters for $162 million. These details, from the confidential settlement agreement, were was obtained by the Albuquerque Journal through an Inspection of Public Records request. The Countrywide investments were made up of mortgage-backed securities […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3751,3868,3752,3757],"tags":[],"class_list":["post-5120","post","type-post","status-publish","format-standard","hentry","category-bank-of-america","category-countrywide-financial","category-financial-firms","category-mortgagebacked-securities"],"yoast_head":"\nCountrywide Finance. 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