Bankruptcy Judge Jerry A. Funk said that Bank of America Corp. can move forward with its $1.75 billion lawsuit against the Federal Deposit Insurance Corp., a win for the bank in its long-running battle over who is ultimately on the hook for losses tied to the multibillion dollar fraud at disgraced lender Taylor Bean & Whitaker Mortgage Corp., Dow Jones Newswires reported yesterday. Judge Funk lifted the Bankruptcy Code's automatic stay provision for Taylor Bean & Whitaker's Ocala Funding LLC conduit - a mortgage-financing vehicle that was at the heart of the fraud - allowing the bank to pursue its lawsuit against the FDIC. Judge Funk said on Wednesday that he was lifting the stay "in the interests of judicial economy and the expeditious and economical resolution of litigation" to permit Bank of America to "prosecute the D.C. action to its conclusion."
