Banking & Finance  April 29, 2010

United Western Bank sues Countrywide Financial

DENVER – United Western Bank, a subsidiary of United Western Bancorp
Inc., filed a complaint in the Second Judicial District Court in Denver
against Countrywide Financial Corp. for losses the bank incurred
totaling $108 million.

According to an April 23 filing with the U.S. Securities and Exchange
Commission, the losses were related to six private label mortgage-backed
securities. In addition to Countrywide, defendants in the proceeding
include Bank of America Corp., UBS Securities LLC and certain officers
of Countrywide.

The mortgage-backed securities were purchased by United Western between
Oct. 5, 2005, and Oct. 12, 2006, according to the SEC filing. The bank
alleges in its complaint that each registration statement and prospectus
supplement made by the defendants and used to market the MBS to United
Western “contained untrue statements of material facts and omissions of
material facts with regard to Countrywide’s underwriting practices and
the nature and characteristics of the underlying mortgage loans in the
MBS.”

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United Western’s complaint seeks an award of damages and recovery of the
money paid for each MBS, plus interest. Bank of America Corp. is
included as a defendant because it acquired Countrywide in a merger in
July 2008.

United Western Bank has locations in Fort Collins and Loveland.

DENVER – United Western Bank, a subsidiary of United Western Bancorp
Inc., filed a complaint in the Second Judicial District Court in Denver
against Countrywide Financial Corp. for losses the bank incurred
totaling $108 million.

According to an April 23 filing with the U.S. Securities and Exchange
Commission, the losses were related to six private label mortgage-backed
securities. In addition to Countrywide, defendants in the proceeding
include Bank of America Corp., UBS Securities LLC and certain officers
of Countrywide.

The mortgage-backed securities were purchased by United Western between
Oct. 5, 2005, and Oct. 12,…

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