Bank of America Loses Ruling in Mortgage Suit Against Countrywide
By Moran Zhang | January 4, 2012 10:06 AM EST
Bank of America Corp. (NYSE:BAC) lost a key ruling against MBIA Inc. (NYSE:MBI), which granted the latter company court permission to pursue further legal action against it, Bloomberg reported Tuesday. MBIA is attempting to make Bank of America buy back faulty mortgage-backed securities originated by its Countrywide Financial unit.
New York State Supreme Court Justice Eileen Bransten said MBIA need only show that Countrywide made misrepresentations about the loans backing the bonds, instead of having to prove a "direct causal link" between Countrywide's alleged misrepresentations and the losses the insurer is seeking to recover.
"No basis in law exists to mandate that MBIA establish a direct causal link between the misrepresentations allegedly made by Countrywide and claims made under the policy," Bransten wrote.
Shares of MBIA closed up 8.1 percent to $12.53 a share. Bank of America ended up 4.3 percent at $5.80 a share, down from the day's high of $5.89.
To contact the editor, e-mail:
Most Popular Slideshows
- Taylor Swift Named People's Best Dressed Stars Of 2014 [PHOTOS]
- Champions League Results: Barcelona Barely Escapes With A Win, Chelsea Fails To Hold On To The Lead [PHOTOS]
- Jeremy Lin, Kobe Bryant Among The Top 5 Overpaid Players In The NBA (Part 1 - Western Conference)
- Reasons Why Michael Jordan Is Better Than LeBron James [PHOTOS And VIDEO]
Join the Conversation
- 2 Reasons Nexus 6 Release Date is Worth the Wait: Android L Data Encryption & Material Design
- Unofficial ‘Samsung Galaxy Alpha’ Can Now Be Purchased For $700 In The US
- Google Now v. Siri v. Cortana – Comparison Of The Three Leading Virtual Assistants
- Xperia Z, Xperia ZL, Xperia ZR Android 4.4.4 KitKat Update Guide
- iOS 8 Jailbreak Release Update: Pangu Devs Will Outrace Evad3rs in Rollout of iPhone 6, iPad Unlocker
- Canada Consumer Alert: Costco No Longer Accepting American Express Cards Starting Jan 1
- Sony Xperia E3 vs. Moto G (2014) – Specifications, Features And Price Showdown