FDIC Looks To Gut BofA's $2B Suit Over Taylor Bean Fraud

Law360, New York (May 3, 2013, 9:00 PM EDT) -- The Federal Deposit Insurance Corp. asked a Washington federal judge Friday to ax a major claim from Bank of America Corp.'s $1.75 billion complaint over losses from Taylor Bean & Whitaker Mortgage Corp.'s alleged fraud, saying no controversy exists because there is nothing the bank to recover.

Acting as indenture trustee for bankrupt Taylor Bean subsidiary Ocala Funding LLC, Bank of America sued the FDIC in its role as receiver for Colonial Bank, which allegedly participated in the fraud that caused Ocala's losses.

While U.S. District...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.