Allstate Corp. (ALL) has shed its opening bell upside and is down fractionally, after the insurance carrier said it was suing Bank of America Corp. (BAC) over mortgage-backed securities that went sour.
The suit alleges the bank's Countrywide unit knew $700 million in residential mortgage-backed securities it sold Allstate were a "toxic mix of loans given to borrowers (who) could not afford the properties and thus were highly likely to default."
BAC shares also were higher in initial trade today.
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