Angry Investors Left Holding Crappy Paper Continue Attack Against Bankster/Peddlers Of Mortgage-Related Investments

Bloomberg reports:

• Bank of America Corp.’s Countrywide unit was sued by Sealink Funding Ltd. in New York over $1.6 billion of residential mortgage-backed securities the fund purchased between 2005 and 2007.(1)



• Sealink filed the suit against Countrywide in New York State Supreme Court [last week] , seeking unspecified compensatory, rescissory and punitive damages. Sealink is a fund created to manage Landesbank Sachsen AG’s riskiest assets after the German lender almost collapsed.



• “Countrywide was an entity driven by only one purpose --to originate and securitize as many mortgage loans as possible into” mortgage-backed securities “to generate profits for the Countrywide defendants, without regard to the investors that relied on the critical, false information provided to them with respect to the related certificates,” lawyers for Sealink said in the lawsuit.



• Sealink filed a similar suit [last week] in the same court against JPMorgan Chase & Co. over $2.4 billion worth of residential mortgage-backed securities purchased between 2005 and 2007.(2)

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• In separate lawsuits filed yesterday in New York state court, JPMorgan Chase and Barclays Capital Inc. were also sued by investors, accused of misrepresenting the quality of the loans underlying their securities.



• Barclays was sued over the sale of $123 million in mortgage-backed securities to HSH Nordbank AG, a German lender.



• JPMorgan was sued by LBBW, which purchased more than $500 million worth of mortgage bonds, according to the complaint. Lawyers for HSH Nordbank said in the suit that the bank’s current damages are at least $40 million.

For more, see Bank of America, JPMorgan Units Sued in Mortgage-Backed Securities Cases.

(1) Sealink Funding Ltd. vs. Countrywide Financial Corp., 652679/2011, New York State Supreme Court, New York County.

(2) Sealink Funding Ltd. vs. Bear Stearns & Co. Inc., 652681/2011, New York State Supreme Court, New York County.