Tom Schoenberg, Bloomberg
Bank of America Corp. (BAC) won a federal judge’s permission to proceed with some claims against the Federal Deposit Insurance Corp. over $1.75 billion in corporate client losses stemming from a mortgage-fraud scheme at failed lender Taylor, Bean & Whitaker Mortgage Corp.
U.S. District Judge Barbara Rothstein, in a 73-page opinion issued yesterday in Washington, said that the bank’s fraud claim against the FDIC is among those that will proceed to discovery. The judge also allowed some FDIC counterclaims against Bank of America to move forward.
Bank of America was trustee of Ocala Funding LLC, an Orlando-based company, which filed for Chapter 11 bankruptcy protection on July 10 listing assets and debt of more than $1 billion. Ocala Funding, a financing vehicle used and controlled by Taylor Bean, issued asset-backed commercial paper to financial institutions including Deutsche Bank AG, Germany’s biggest bank, and Paris-based BNP Paribas SA, according to court papers.