BofA's Bid To Consolidate Bond Insurers' Claims Denied

Law360, New York (November 1, 2011, 3:00 PM EDT) -- A New York judge refused Monday to spin off and consolidate successor liability claims against Bank of America Corp. stemming from four bond insurers' suits alleging Countrywide Financial Corp. made securitized loans appear more creditworthy to trick the insurers into backing them.

Four bond, or monoline, insurers — MBIA Inc., Syncora Guarantee Inc., Ambac Assurance Corp. and Financial Guaranty Insurance Co. — allege that Countrywide induced them into insuring mortgage-backed securities by making the loans in those securities seem more creditworthy than they actually were. Since...
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