BofA’s suit against FDIC thrown out
The Federal Deposit Insurance Corp. (FDIC) can breathe a sigh of relief. On Monday, a judge tossed the suit Bank of America (BofA) filed against the FDIC over $1.7 billion in investor losses.
August 28, 2013 at 08:18 AM
2 minute read
The original version of this story was published on Law.com
The Federal Deposit Insurance Corp. (FDIC) can breathe a sigh of relief. On Monday, a judge tossed the suit Bank of America (BofA) filed against the FDIC over $1.7 billion in investor losses.
BofA filed the suit as a result of its role as trustee for Ocala Funding, a subsidiary of the now defunct Taylor, Bean & Whitaker Mortgage Corp., which failed after years of fraudulent activity. In 2011, Taylor Bean's CEO Lee Farkas was convicted of masterminding a $3 billion mortgage lending scheme. He was sentenced to 30 years in prison and other Taylor Bean executives later came forward to admit involvement. The downfall of Taylor Bean also led to the collapse of Colonial Bank, which was Taylor Bean's key funder.
In dismissing the suit, U.S. District Judge Barbara Rothstein in Washington, D.C., said the FDIC didn't have assets to make payments on general creditor claims. She said in her dismissal that BofA's claims “have no value and must therefore be dismissed because no case or controversy exists.”
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Trending Stories
- 1The Law Firm Disrupted: For Big Law Names, Shorter is Sweeter
- 2Wine, Dine and Grind (Through the Weekend): Summer Associates Thirst For Experience in 'Real Matters'
- 3'That's Disappointing': Only 11% of MDL Appointments Went to Attorneys of Color in 2023
- 4What We Know About the Kentucky Judge Killed in His Chambers
- 5'I'm Staying Everything': Texas Bankruptcy Judge Halts Talc Trials Against J&J
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250