. Now the Federal Deposit Insurance Corporation has announced a $190 million settlement against eight banks over Countrywide mortgage-backed securities.
The FDIC announced the settlement Thursday. It settles claims witch Barclays Capital, BNP Paribas Securities Corporation, Credit Suisse Securities, Deutsche Bank Securities, Edward D. Jones & Co., Goldman Sachs, RBS Securities and UBS Securities.
The FDIC, as receiver for five failed banks, filed six lawsuits in the case for violations of state and federal securities laws between 2011 and 2012. The agency made the claims based on what it said were misrepresentations in offering documents for 21 Countrywide residential mortgage-backed securities purchased by the failed banks.
The Countrywide settlement funds will be divided among five failed bank receiverships: Colonial Bank of Montgomery, Ala.; Franklin Bank of Houston, Texas; Guaranty Bank of Austin, Texas; Security Savings Bank of Henderson, Nev.; and Strategic Capital Bank of Champaign, Ill.
So far, the FDIC has filed a total of 19 RMBS lawsuits on behalf of eight failed institutions.
Countrywide can’t seem to stay out of the news lately. Las week Bank of America saw a judgment regarding toxic Countrywide bonds