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To B Of A, Countrywide Is A Tough Liability To Unload

Publication Date: 
August 10, 2011
Source: 
American Banker
Author: 
Jeff Horwitz

Professor Robert Daines is quoted by Jeff Horwitz on how it was likely that Bank of America has a valid defense to claims that it lacked corporate separateness.

With Bank of America dangerously weighed down by costly acquisitions, its longstanding contention that it could jettison its troubled mortgage unit Countrywide must hold considerable appeal within the company's executive offices.

From a legal point of view, B of A appears to have a colorable legal case in claiming in some of its court filings the right to unload Countrywide.

...

"Bank of America very likely has a valid defense to claims that it lacked corporate separateness," professor Robert Daines of Stanford Law School wrote in the memo.