Legal News

MBIA Sued by Bank of America
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

MBIA Inc has been sued by Bank of America Corp in a state court in New York for interfering with a tender offer to purchase bonds from MBIA, according to Reuters. MBIA tried to change the terms of some of its bonds so it could remove risk that it could be in default if a unit was placed into liquidation or rehabilitation by regulators in New York.

A counteroffer was made by Bank of America to purchase the bonds. The company said that it thought the changes would increase the risk of the insurance unit at MBIA being placed into liquidation or rehabilitation. This would then jeopardize the claims of the policyholders.

  
What
Where


Bank of American announced Thursday that it bought $136 million of senior note in that tender and then issued a default notice when MBIA tried to change the terms. In the lawsuit, Bank of America claims that the consent solicitation was the most recent “premeditated and subversive actions” of MBIA since 2008 to create benefits for stockholders and executives at the expense of Bank of America.

Bank of America claims in the lawsuit, which was filed on Thursday, that MBIA interfered illegally with the tender offer and asked for consent solicitation and amendment to be declared invalid.

On the other side of things, MBIA alleges that Bank of America owes the company billions of dollars for bad mortgages that it wants Bank of America to repurchase. The bank claims that MBIA owes it billions for credit default swap transactions.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

RELEVANT JOBS

Staff Attorney

USA-VA-Fairfax

The Staff Attorney is responsible for managing the Fund’s delinquent contribution and withdraw...

Apply now

Associate Attorney

USA-TX-Sugar Land

Civil Litigation Firm in Sugar Land, TX. is seeking an attorney with 2 - 5 years litigation exp...

Apply now

Second Year Litigation Attorney

USA-CA-Sacramento

SECOND YEAR LITIGATION ATTORNEY   Cook Brown, LLP, a Sacramento boutique labor & employme...

Apply now

Associate Attorney - New Orleans

USA-LA-New Orleans

Slocumb Law Firm, LLC, is a national personal injury law firm. This is an excellent opportunity for ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Personal Injury Litigator

USA-VA-Fairfax

Northern Virginia office of our client is seeking a personal injury litigator with 4+ years of stron...

Apply Now

Associate Attorney

USA-CA-Larkspur

Larkspur office of our client seeks an associate attorney with 4-6 years of experience/background pr...

Apply Now

Associate Attorney

USA-MI-Bloomfield Hills

Bloomfield Hills office of a BCG Attorney Search Top Ranked Law Firm seeks an associate attorney wit...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top