Tuesday, January 03, 2012

Court Ruling: MBIA wins vs. BofA

by Bill McBride on 1/03/2012 07:13:00 PM

From Bloomberg: MBIA Wins Judgment Ruling Against Countrywide

MBIA, which says it was duped into guaranteeing payment on Countrywide mortgage bonds, need only show the lender made misrepresentations about the loans backing the bonds, instead of having to prove they caused the losses the insurer is seeking to recover, New York state Judge Eileen Bransten said in a decision.

“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,” she wrote.
More from the WSJ: MBIA Wins Key Ruling in Mortgage Suit vs. Countrywide

Earlier:
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Construction Spending increased in November
FOMC Minutes: Agreement to provide "projections of appropriate monetary policy" in January
Question #7 for 2012: State and Local Governments