BofA Sues FDIC Over 'No Value' Ruling For Colonial Bank

Law360, New York (July 23, 2013, 1:07 PM EDT) -- Bank of America NA sued the Federal Deposit Insurance Corp. on Monday for allegedly trying to defuse the bank's $1.75 billion lawsuit stemming from the alleged fraud at Taylor Bean & Whitaker Mortgage Corp. and Colonial Bank's collapse with an illegal "no value" ruling.

According to the suit, the FDIC said April 15 that there weren't enough funds left from Montgomery, Ala.-based Colonial Bank, which the FDIC had seized in 2010, to pay out some of Bank of America's claims against the defunct bank, which collapsed...
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