MBIA, Countrywide Debate $4B MBS Loss In NY Appeals Court

Law360, New York (March 12, 2013, 7:28 PM EDT) -- MBIA Inc. can't make Bank of America Corp.'s Countrywide Financial Corp. repay MBIA the billions of dollars it's paid in claims to Countrywide mortgage-backed securities investors because the bond insurer's only option is to have the problem loans repurchased, a Countrywide attorney told a New York state appeals court Tuesday.

Countrywide's Barry R. Ostrager of Simpson Thacher & Bartlett LLP told the panel during a hearing that MBIA can't collect so-called rescissory damages — a way to recoup the claims MBIA has had to pay out...
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