NEW YORK, April 12 A New York judge has ruled
that Bank of America CEO Brian Moynihan must testify in
a lawsuit brought by bond insurer MBIA Inc. which claims
the bank fraudulently induced it to insure risky mortgage-backed
The judge said Moynihan could provide relevant testimony in
the case due to his position as CEO, former president of
investment banking and the fact that he oversaw the process of
integrating Countrywide into Bank of America.
Bank of America acquired mortgage lender Countrywide in July
2008. MBIA filed a Countrywide later that year. In 2009, MBIA
claimed Bank of America was liable for Countrywide's conduct.
Bank of America, the second-largest U.S. bank by assets, is
fighting several legal cases following the global financial
crisis and had sought to block MBIA efforts for Moynihan to give
MBIA was once the largest U.S. municipal bond insurer. It
announced a restructuring in 2009 after incurring large losses
insuring mortgage debt.
Bank of America had asked New York Supreme Court Justice
Eileen Bransten to rule that Moynihan did not need to testify,
arguing that MBIA was seeking his deposition only to harass the
bank and that Moynihan had no unique knowledge about the case.
But the judge on Wednesday denied the request, according to
court papers made public on Thursday.
"The knowledge Moynihan gained as part of the (Countrywide)
Steering Committee is unique, and it is material and necessary
to MBIA's successor liability claim," the judge said.
Moynihan was involved in "high-level decisions regarding the
Countrywide transaction" and his testimony will not duplicate
that of lower-level employees, she said.
MBIA declined to comment and Bank of America did not
immediately respond to requests for comment.
The cases is MBIA Insurance Corp v. Countrywide Home Loans
Inc et al, New York State Supreme Court, New York County, No.