BofA Can Pursue FDIC for Taylor Bean Fraud Losses, Judge Says

Bank of America Corp. can proceed with its 2010 lawsuit against the Federal Insurance Deposit Corp. over $1.75 billion in corporate client losses stemming from a mortgage-fraud scheme at failed lender Taylor, Bean & Whitaker Mortgage Corp., a federal bankruptcy judge said.

U.S. Bankruptcy Judge Jerry Funk in Jacksonville, Florida, who is overseeing the bankruptcy of Ocala Funding LLC, a financing vehicle used and controlled by Taylor Bean, ruled today that the bank’s pursuit of the FDIC in a case in Washington wouldn’t interfere with the Florida proceedings.