BofA Beats MBS Claims In $741M Colonial Bank Saga

Law360, Los Angeles (April 9, 2013, 9:57 PM EDT) -- A California federal judge on Tuesday tossed the Federal Deposit Insurance Corp.'s claims against Countrywide Securities Corp. and successor Bank of America Corp. in one of five suits seeking $741 million in damages for allegedly duping now-defunct Colonial Bank into buying doomed mortgage-backed securities.

As a receiver for Alabama-based Colonial, the FDIC filed five suits in Alabama, New York and California in August, alleging Bank of America, JPMorgan Chase & Co. and other major lenders took bundles of shaky loans and marketed them as rock-solid securities....
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