BofA/Merrill’s mortgage-backed securities morass

In multiple cases, banks accused of misleading investors and “dollar rolling”

Just days after Countrywide Financial was in the news again thanks to Allstate Insurance Co.’s lawsuit against it to recoup $700 million in losses on mortgage-backed securities, a federal judge ruled that Bank of America and its Merrill Lynch unit will face a pair of similar lawsuits brought by a group of union and public employee retirement funds.

Yesterday, U.S. District Judge William Pauley named the Pennsylvania Public School Employees' Retirement System as the lead plaintiff in a case against Bank of America that combines three cases alleging the bank of improperly processed foreclosures and hid mortgage debt exposure.

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