Wednesday, January 04, 2012

BofA Takes Another Hit

Well, well.

Bank of America will appeal this, of course.

A judge in New York state court delivered a ruling in favor of mortgage-bond insurers in a case over mortgage-backed securities Countrywide Financial had insured by MBIA Inc. In the ruling, highly anticipated among banks and bond insurers, New York Supreme Court Justice Eileen Bransten said MBIA doesn't have to prove direct correlation between allegedly fraudulent statements made by Countrywide and the souring of the mortgage bonds.

That suit is against Countrywide, now owned by B of A.  If MBIA prevails, look for a lot more of these, against other outfits, such as Goldie.

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