Bank of America (BAC -2.9%) lost a key battle in its mortgage fraud fight when MBIA (MBI) won...

|About: Bank of America Corporation (BAC)|By:, SA News Editor

Bank of America (BAC -2.9%) lost a key battle in its mortgage fraud fight when MBIA (MBI) won the right to use statistical sampling to prove its case that BofA fraudulently induced it to insure $21B of mortgage-backed securities. "MBIA has been handed a powerful tool for establishing its claims," John Carney says, "and Bank of America is a bit closer to facing the put-back apocalypse it hoped it could avoid."