Bank of America Corp (NYSE:BAC) lawsuit against Federal Deposit Insurance Corp. dismissed

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Dallas, Texas 08/27/2013 (Financialstrend) – A federal judge of the United States had on Monday thrown out the recent lawsuit filed by Bank of America Corp (NYSE:BAC) against the Federal Deposit Insurance Corp. The lawsuit had claims reporting that the banking major had incurred investor losses of around $1.7 billion which stemmed out from the economic collapses that occurred in 2009. The banking major had contended that the insurance company had wrongly denied many claims made by Ocala note holders to recover their losses from the Colonial Bank.

The District Judge, Barbara Rothstein had on Monday dismissed the claims made by Bank of America Corp (NYSE:BAC) stating that the determination made by the Federal Deposit Insurance Corp. conveying that the Colonial Bank did not hold much sufficient assets to pay out to the general unsecured creditors proved to deprive the judge off her jurisdiction. It had further been commented that such No value determination is a final agency action which would prove to be binding on the court and it could further not be analyzed whether the company presently holds assets or if it will ever hold sufficient assets in the future to pay off to the unsecured creditors.

Bank of America Corp (NYSE:BAC) had proved to present decrease in share prices by 0.55% on Monday and had thereby closed the trading session at $14.49 per share. The stock was observed fluctuate during the day to present intraday prices moving in the range of $14.49 to $14.70 per share on Monday, while the stock had recorded 52 week low at $7.83 per share and 52 week high at $15.03 per share. Further, the stock’s trading volume on Monday was reported to be at 68.94 million shares while for the past 30 days the stock had reported average trading volume at 104.54 million shares per day.