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 Forbes' Second Highest Paid Country Musician [PHOTOS]
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- Lunch with the Gods: Pope Francis Eats with Vatican Workers in Cafeteria
Join the Conversation
- Toyota Tops World Sales of Cars, Sells Over 5K Million Vehicles in First Half of 2014
- Man Swindles Apple for $309,768 in 16 States
- Texas Man Selling Condo With ‘Funniest and Most Revealing Ad’
- Air New Zealand Pays $1000 to NZ9 Passengers After Three-Night Delay
- Qatar's Surging Real Estate Prices Won't Affect Thriving Economy – Report
- Transfer News: Ron Vlaar to Consider Villa Exit, May Move to Tottenham
- AS Roma's Seydou Keita Throws Water Bottle at Real Madrid defender Pepe for Spitting [VIDEO]
- The Mentalist Season 7 Spoilers: CBS Skips Simon Baker's Patrick Jane in Fall Schedule, Josie Loren Joins Cast
- Game of Thrones Season 5 Update: Maisie Williams Talks Arya Stark, Lady Stoneheart, and Surprises
- Transfer News: FC Barcelona, Man Utd to Compete for Juan Cuadrado's Signature as Fiorentina Reveal Willingness to Sell