Why Bank of America Corp (BAC) Might Lose At This Important Hearing

In the complaint filed in the so-called “Hustle” case, U.S. Attorney Preet Bharara outlines how the state of New York considers Bank of America Corp (NYSE:BAC) to be liable for this shoddy behavior — both as a direct participant, and as the successor to Countrywide. Preet alleges that the two entities engaged in a de facto merger, much as MBIA Inc. (NYSE:MBI) had — at least, according to New York law. And, that’s what counts at this point.

Will Kapnick approve the settlement without going into all these issues? In its motion to have the Hustle suit dismissed, B of A argued only that the AG’s office hadn’t proved fraud. For obvious reasons, the question of the bank’s responsibility for Countrywide’s abuses is one can of worms that Bank of America Corp (NYSE:BAC) would rather not open.

The article Why Bank of America Might Lose at This Important Hearing originally appeared on Fool.com and is written by Amanda Alix.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool owns shares of Bank of America.

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