mortage-backed securities

Allstate Sues Bank of America Over Toxic Securities

Allstate is suing Bank of America and its Countrywide Financial division over Countrywide's sale of $700 million in mortgage-backed securities to the insurance giant, alleging that Countrywide knew in advance that the assets would drop in value because of a high percentage of defaults.

Mortgage-Backed Securities Return, but Are We Ready?

After a three-year break, firms are again starting to offer mortgage-backed securities, the investments that contributed to the financial meltdown. The latest offerings, proponents say, focus on more stable high-end mortgages, but skeptics worry there still aren't enough safeguards in place.