BofA Not Liable For Countrywide's Misdeeds, Judge Hears

Law360, New York (January 9, 2013, 6:59 PM EST) -- Holding Bank of America Corp. liable for its now-subsidiary Countrywide Financial Corp., which allegedly hid problems with billions of dollars worth of mortgage-backed securities insured by MBIA Inc., will scare off financial firms from ever rescuing distressed companies, the bank told a New York state judge Wednesday.

Walter Dellinger of O'Melveny & Myers LLP, who represents Bank of America, said during a hearing that it would be an "enormously dangerous step" to hold Bank of America liable for Countrywide's alleged misdeeds because it would stop other...
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