Bank of America Sues the FDIC Over Taylor Bean Whitaker Garbage
What a tangled web we weave when we are bitches for the US government and take bites too big to chew out of rotting carcasses.
The Federal Insurance Deposit Corp. was sued by Bank of America Corp. over $1.75 billion in investor losses stemming from an alleged fraud by failed lender Taylor Bean & Whitaker Mortgage Corp.
The FDIC has denied claims by Bank of America against Colonial Bank and another financial institution in receivership that bought fake mortgages from a Taylor Bean unit, Ocala Funding LLC, according to a complaint filed Oct. 1 in federal court in Washington. Bank of America was the trustee for notes issued by Ocala Funding, according to the complaint.
Ocala financed Taylor Bean’s mortgages, issued debt and used the proceeds to buy the mortgages, Bank of America said in the complaint. Ocala then sold the notes to pay off the debt or buy additional mortgages, according to the compliant.
I'm curious, did Bank of America do its due diligence when it agreed to take over where TBW failed? Even without a full financial autopsy at that point, available data at the time certainly seemed to make it clear that something was awfully wrong with the entire Colonial Bank/TBW debacle, starting with the SIGTARP raids. Or was Bank of America so used to that sort of thing that they chose to ignore the red flags and do it anyway?
Colonial Bank/TBW is still all kinds of screwed up. The case against TBW's Lee Farkas was filed in Virginia due to the physical location of the SEC's EDGAR database, and not in Ocala, FL where the lender was based. Alabama state regulators (where Colonial Bank was based) didn't know how to handle the mess. The FDIC sued TBW in September for failing to assist in the Colonial postmortem. The list goes on and on and on and on...