Bancorp Blasts AmFin Plan's Liability Releases

Law360, New York (June 1, 2011, 6:10 PM EDT) -- Bancorp Bank, an online bank holding $2.3 million in AmFin Financial Corp. securities, told an Ohio bankruptcy court Tuesday that AmFin's reorganization plan and disclosure statement should be rejected because the litigation releases it provides are too broad.

In an objection, Bancorp said it was considering whether it will bring litigation against AmFin over its issuance of a large volume of high risk, no-documentation loans, known as Alt-A loans in some quarters and liar loans in others. Bancorp said it invested in AmFin's capital securities based...
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