BofA Counsel O'Melveny Warns Banks Of Potential Losses

Law360, New York (August 8, 2012, 6:57 PM EDT) -- O'Melveny & Myers LLP attorneys are saying lenders might want to re-evaluate potential losses from securitized mortgages following a recent court decision favorable to insurers, a suggestion the firm issued amid its defense of Bank of America Corp. in a case over allegedly faulty underwriting.

The July 27 client note said financial institutions might want to shore up their reserves because of a June federal court decision could ease the burden on insurers trying to hold banks liable for failed loans.

In the June 19 ruling,...
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