The court hearing was to be today, but has now been postponed until October.
This is part of the reason why Bank of America wants it's settlement made with all the Attorneys Generals of all the states, so they are only liable for 8 billion and then it makes this suit null and void as they will have settled with the state AGs.
MBIA has said 8 billion is not enough for them alone.
Bank of America is arguing the courts can not rule against them, as it will adversely affect the bank and opens the door for others.
BOA tried to stop MBIA in earlier court proceedings from using samples of the type of fraud loan documents being used for their mortgages in their case against them.
When BOA purchased Countrywide in 2008, the largest mortgage company in the U.S. at the time, Countrywide had signed an agreement with MBIA saying they would "buy back any loans with misrepresentations in them". So BOA took on that liability when they purchased Countrywide and now they are fighting it.
Some have estimated the buy back liabilities at $74 billion for BOA.
BOA is in talks with 22 investor bond holders, trying to settle for 40% of the mortgages and their settlement made with the AG's would encompass the 8 billion being offered.
The case is MBIA Insurance v. Countrywide Home Loans, 602825-08, New York State Supreme Court (New York County).
This is all why BOA is rushing the state AGs to settle their fraud and sanctify them committing crimes against their investors and the homeowners of the U.S.
If the AG's settle and allow BOA to have defrauded billions and billions from their investors and bond insurers, I believe BOA will go down. What investor or bond holder would touch another one of their fraud loans, as they lost billions and billions due to them? BOA will hopefully become a piranha as they are in the investment world of MBS.
Very small portion of article:
Bank of America, in its talks with 22 of the world’s largest debt investors, argued that any loan repurchase would require loss causation be proven, according to a filing in New York state court of an expert opinion by Brian Lin, a managing director at RRMS Advisors. Those negotiations led to the proposed $8.5 billion settlement.
Lin said a settlement between $8.8 billion and $11 billion would be reasonable, relying in part on an assumption that investors would be successful in getting Bank of America to repurchase only 40 percent of misrepresented loans. The investor group had argued that they thought a success rate of 50 percent to 75 percent was more reasonable, according to his opinion filing.
One thing that never gets talked about is all these loans are created out of nothing! This is fiat money! The banks just create this money and expects the borrower to pay them back plus interest for their fiat money!
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