MBIA (MBI) gains 6.7% after Judge Rakoff issues what may be a precedent-setting ruling in...

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Chris DeMuth Jr. Comments (1751)
 
Excellent; MBI's settlement prospects with BAC appear to be very good. This could be a great year for MBI.
6 Feb, 09:31 AM Reply Like

MexCom Comments (2799)
 
The fact remains that these investment vehicles were not guaranteed against risk. The complaint is that the risk was greater than what was presented. The loans backing these were originally performing when the securities were sold. The court in each case would have to rule on the specific security in question and the realm of risk entailed that the original presentation was outside the realm of risk. In an economic meltdown, all securities are at a maximum of risk that could entail total loss. This was the risk that as much it would not be highly probable could occur and the risk was accepted at the time of security purchase.

I would not interpret this as a blanket precedent placing a claim against the banks.


6 Feb, 09:51 AM Reply Like

socrates+ Comments (10)
 
actually, the R&Ws made by flagstar in these pools were a lot softer than the R&Ws made by bac, for example.
6 Feb, 11:30 AM Reply Like

lcmucci Comments (12)
 
Mexcom

The banks lawyer's should read your column, maybe the judge too.
6 Feb, 10:20 AM Reply Like

TwistTie Comments (2446)
 
I think it's fascinating that this kind of thing is still going on.

How much longer will these lawsuits be in the news?
6 Feb, 11:48 AM Reply Like

Michael Bryant Comments (3547)
 
Wished I listened to my uncle and bought (MBI) at $3. Now it is $10.47. Well, still off a lot from $70.
6 Feb, 09:54 PM Reply Like