The Associated Press July 14, 2010, 2:39PM ET

Ore. says pension fund lost $29M, sues Countrywide

Oregon has joined a lawsuit against the former mortgage giant Countrywide Financial over pension fund losses.

The state said in press release Wednesday that the Oregon public retirement system lost $29 million after buying $200 million in mortgage-backed securities.

The state says that contrary to documents that Countrywide provided, the loans in the investment fund didn't meet credit and appraisal standards.

State officials said in a press release that the Iowa public pension fund is the lead plaintiff in the suit. It was filed earlier this year in California, where Countrywide had headquarters.

Bank of America Corp. bought Countrywide in 2008 and changed its name.

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