FDIC 'No Value' Ruling Blocks BofA's $1.7B Suit, Judge Says

Law360, New York (August 27, 2013, 2:24 PM EDT) -- A "no value" determination by the Federal Deposit Insurance Corp. — if it's legal — puts an end to Bank of America Corp.'s $1.75 billion lawsuit stemming from the alleged fraud at Taylor Bean & Whitaker Mortgage Corp. that led to the collapse of an Alabama-based bank, a Washington federal judge ruled Monday.

U.S. District Judge Barbara Jacobs Rothstein said that the FDIC's April 15 "no value" finding — that determined there's not enough money left from Montgomery, Ala.-based Colonial Bank, which the FDIC had seized...
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