It turns out U.S. Bancorp is next in line to sue Bank of America. Yesterday, it filed a suit on behalf of investors over $1.75 billion of mortgage loans, says Forbes.Here’s why:
U.S. Bancorp had been acting as trustee of a trust that included 4,400 mortgage loans from Bank of America’s Countrywide Unit.
According to it, Countrywide agreed to buy the mortgages back if the bank was mislead about the quality of the mortgages — that makes all of this Bank of America’s problem.
U.S. Bancorp hired law firm Quinn Emanuel Urquhart & Sullivan for to represent them. The firm is also working for AIG in its $10 billion suit against Bank of America.
Meanwhile, Bank of America’s stock is down. But considering what happened last week, it’s getting off easy.