U.S. judge tosses BofA suit vs FDIC over $1.7 billion investor losses
By Jonathan Stempel
Mon Aug 26, 2013 6:51pm EDT
(Reuters) - A federal judge on Monday threw out Bank of America Corp's (BAC.N) lawsuit against the Federal Deposit Insurance Corp over $1.7 billion of investor losses stemming from the collapses in 2009 of a large regional bank and a large mortgage lender.
The lawsuit concerned the FDIC's role as receiver for an banking unit of Alabama's Colonial BancGroup Inc and the implosion of Taylor, Bean & Whitaker Mortgage Corp, home to what federal prosecutors called a $2.9 billion mortgage fraud.
Bank of America, as trustee for notes issued by Taylor Bean's Ocala Funding LLC unit, had contended that the FDIC wrongly denied claims by Ocala noteholders to recover from Colonial Bank. Among the buyers of Ocala's notes were Deutsche Bank AG (DBKGn.DE) and France's BNP Paribas SA (BNPP.PA).
