MBIA (MBI) Slumps on Unfavorable Summary Judgement Call in Countrywide Case(BAC)
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MBIA, Inc. (NYSE: MBI) shares are getting hit in early trading Tuesday following news late Monday that it lost a bid for summary judgement against Bank of America's (NYSE: BAC) Countrywide unit.
Bloomberg notes that New York State Supreme Court Justice Eileen Bransten in Manhattan rejected MBIA's argument that it had already shown Countrywide should repurchase loans in which risk wasn't fully disclosed. The judge noted that there are still "facts in dispute" before a verdict in MBIA's favor can be made.
MBIA has also asked that the court find BofA liable for alleged misconduct by Countrywide. Bransten did not give either company a favorable ruling in the "successor liability" claims.
Shares of MBIA are down 6.4 percent, bouncing off of earlier lows.
Bloomberg notes that New York State Supreme Court Justice Eileen Bransten in Manhattan rejected MBIA's argument that it had already shown Countrywide should repurchase loans in which risk wasn't fully disclosed. The judge noted that there are still "facts in dispute" before a verdict in MBIA's favor can be made.
MBIA has also asked that the court find BofA liable for alleged misconduct by Countrywide. Bransten did not give either company a favorable ruling in the "successor liability" claims.
Shares of MBIA are down 6.4 percent, bouncing off of earlier lows.
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