$500m settlement for Countrywide

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The Independent Online

Countrywide Financial, the US mortgage giant rescued by Bank of America at the height of the credit crisis, has settled a mortgage-backed securities lawsuit with its investors, led by the Iowa Public Employees' Retirement System, for $500m (£328m).

If approved by the US District Court in California, the settlement will halt the lawsuit filed against Countrywide for allegedly selling mortgage-backed securities that were later downgraded to junk bond status.