Bank of America Said to Offer MBIA Settlement Pennies on the Dollar in Defective-Mortgage Suit

Bank of America Corp. (BAC), the biggest U.S. bank, has made a preliminary offer to bond insurer MBIA Inc. (MBI) aimed at settling a legal dispute tied to defective mortgages, according to two people briefed on the discussions.

The two companies remain split on how much the Charlotte, North Carolina-based bank would have to pay to resolve the disagreement, said the people, who declined to be identified because the talks are private. Bill Halldin, a spokesman for Bank of America, and Kevin Brown of Armonk, New York-based MBIA declined to comment.

The lawsuit is among several between Bank of America and MBIA, which guaranteed Wall Street’s toxic mortgage debt. Bank of America bought Countrywide Financial Corp. in 2008 and Merrill Lynch & Co. in 2009, two of the largest participants in the market for subprime home mortgages.

More here…

Again, nothing about who these “defective mortgages” were sold to…

You can sue other manufacturers for defective products, why not the banks?

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4closureFraud.org

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