Bank of America Corp. said in its annual filing that it is still working through five separate lawsuits with financial guarantor Ambac Assurance Corp. The lawsuits concern bond insurance policies provided by Ambac on some securitized pools with loans that Ambac alleges were misrepresented by Bank of America.
In May 2017, a New York court ruled that Ambac needed to provide more proof that Bank of America's Countrywide units mischaracterized the underlying loans. Ambac motioned to appeal the decision, which the court granted in July 2017.
A court in Wisconsin remanded the case in June 2017 to an appeals court for consideration of jurisdiction over the case. In December 2017, the Wisconsin Court of Appeals ruled that there was no specific jurisdiction over Countrywide. On Jan. 16, 2018, Ambac asked the Wisconsin Supreme Court to review that decision.
Bank of America did not disclose any updates for 2017 on the three other Ambac lawsuits.
In total, the company said it had recognized $753 million in litigation-related expense for 2017 compared to $1.2 billion for 2016.
Bank of America did not provide an update on its lawsuit with the Federal Deposit Insurance Corp. over allegedly unpaid additional deposit insurance assessments.