$8.5B BofA Deal Ducked Bankruptcy Risk, Expert Says

Law360, New York (September 9, 2013, 6:25 PM EDT) -- The risk of Bank of America Corp. bankrupting its Countrywide subsidiaries in 2011 showed that its $8.5 billion mortgage-backed securities settlement was the best option for investors, an expert testified Monday in a trial over the deal.

University of Chicago professor Daniel R. Fischel, an expert witness for the securities' trustee, the Bank of New York Mellon Corp., testified during the bench trial that resumed Monday after a six-week hiatus that suing Bank of America likely wouldn't have gotten investors anywhere near the $8.5 billion they'll...
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