Bloomberg News

BofA Accuses MBIA of Harassment in Fight Over CEO Deposition

March 09, 2012

Brian T. Moynihan, chief executive officer of Bank of America Corp. Photographer: Jeff Kowalsky/Bloomberg

Brian T. Moynihan, chief executive officer of Bank of America Corp. Photographer: Jeff Kowalsky/Bloomberg

Bank of America Corp. asked a judge to block Chief Executive Officer Brian Moynihan’s deposition in MBIA Inc. (MBI)’s lawsuit against the bank, accusing the bond insurer of harassment.

MBIA’s attempt to depose Moynihan is intended to impose “unnecessary burdens” on Bank of America and the CEO, the Charlotte, North Carolina-based lender argued in seeking a protective order to block the deposition.

“We have evidence this effort to depose Brian Moynihan is for harassment purposes,” Jonathan Rosenberg, a lawyer for the bank, said today at a hearing in Manhattan. “It is clearly disruptive to Bank of America’s business.”

MBIA sued Bank of America’s Countrywide Financial unit in 2008 over mortgage loans. MBIA agreed to guarantee payments to investors that bought securities backed by pools of the lender’s loans, which MBIA claims didn’t live up to their promised quality.

MBIA, based in Armonk, New York, said in court papers that Bank of America’s request for a protective order is “frivolous” and called Moynihan an appropriate witness with knowledge relevant to the company’s claims.

New York State Judge Eileen Bransten didn’t rule on the dispute at the hearing.

The case is MBIA Insurance Corp. v. Countrywide Home Loans Inc., 602825-2008, New York State Supreme Court (Manhattan).

To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net


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