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High Profile Investors Sue Bank Of America

Mortgage News > High Profile Investors Sue Bank Of America
Date: 01/27/2011    High Profile Investors Sue Bank Of America

High profile investors filed a formal law suit Monday with the New York Supreme Court against banking mogul Bank of America on the grounds of mortgage fraud. Investors such as TIAA-CREF Life Insurance Co. and New York Life Insurance Co., as well as others, claim Bank of America misled them as to the value of the mortgage-backed securities it was selling and continued the transaction knowing the information was false.

Bank of America has lost billions of dollars through the settlement of other litigations, $2 billion after settling with Fannie Mae and Freddie Mac.

Shirley Norton, Bank of America spokeswoman, responded to the suit filed January 24 by saying “We will review the suit, but on first glance these sound like large, sophisticated investors who now want to blame someone for the fact that the declining economy caused their investment to lose value.”