BOSTON (Legal Newsline) - Massachusetts Attorney General Martha Coakley announced Monday that the state pension fund will receive an $11.3 million payment as part of a settlement with Countrywide Securities Corporation.
The settlement with CSC is part of Coakley's industry-wide review of residential mortgage securitization practices in the state. Under the terms of the settlement, CSC will pay $17.3 million, which includes the $11.3 million payment to compensate government investors with the Pension Reserves Investment Management Board. The remaining $6 million will be paid to the state.
"We are pleased to return these critical public funds to the state pension system," Coakley said. "It is important to hold Wall Street accountable for its role in the subprime lending crisis. Our office will continue its leading role in this area as we work to help homeowners and others harmed by investment banks."
Coakley's office said the state pension fund can expect to receive an additional $7 million by early 2014 as a result of a recent settlement with JPMorgan that was announced in November.
Coakley's review resulted in six settlements to date with total payments of more than $300 million to the state, including a $60 million recovery from Goldman Sachs related to its securitization of so-called "doomed to fail" subprime loans in Massachusetts.