Allstate Corp. sued Bank of America Corp. and its Countrywide mortgage unit over $700 million in residential mortgage-backed securities the insurer purchased, claiming Countrywide misrepresented the investments.Allstate has a rep of being one of the worst major insurance companies in the business when it comes to paying out to its policyholders.* So, in a way, I can only hope that both sides lose.
“The defendants knew the loans offloaded onto Allstate were a toxic mix of loans given to borrowers that could not afford the properties, and thus were highly likely to default,” Allstate said in a complaint filed in federal court in Manhattan yesterday.
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* USAA is probably the best. But you have to have had some connection to the military or a USAA member in order to get vehicle insurance from them.
5 comments:
Let's just hope they all get eaten by fire ants.
I'm optimistic! It's science: http://www.rawstory.com/rs/2010/12/conservatives-fear-center-brain/
I thought the Prime Directive of the insurance "industry" was "Pay No Claim"...... of course maybe they'll offer one of Monty Python's naked ladfies.
FWIW 40 years ago when I was new to driving and car ownership my father told me the same thing about Allstate from his experience as an attorney representing the customers.
Plus ça change, plus c'est la même chose
I suppose I'm rooting for Allstate here, although my heart sure isn't in it. This sort of fraud was so common that it's hard to imagine why people aren't already in jail over it. Seems like they got around the usual legalities based on these things being "derivatives".
Whatever happens, though, I'm not going to be happy for the winner.
You're in good hands with Allstate. Of course they have their middle fingers in your orifice all the while.
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