Bank of America Corp. has been fighting in a New York court this week to avoid as much as $3 billion in liability for defaulted Countrywide mortgage securities, the Wall Street Journal reported today. In a two-day hearing Wednesday and yesterday, Bank of America argued that it structured its 2008 deal with Countrywide Financial Corp. in a way that allowed it to avoid liability for certain Countrywide assets, branded "too toxic" in one internal bank email. MBIA maintained the deal was a merger in which Bank of America absorbed 19,000 Countrywide employees, technology and operations to enhance its mortgage capabilities. The insurer introduced videotaped deposition testimony from executives including former Chief Executive Ken Lewis and current CEO Brian Moynihan to bolster its case.
