NEW YORK ( TheStreet) -- Bank of America (BAC) CEO Brian Moynihan is facing a May 18 deadline to give testimony in a lawsuit brought by MBIA (MBI), an event that will put increasing pressure on the bank to reach a settlement expected to cost some $2 billion, according to an analyst following the legal battle.
MBIA has sued Countrywide Financial, accusing the lender of fraudulently inducing MBIA to insure 15 separate securitizations of residential mortgages sold between 2004-2007. Bank of America acquired Countrywide in 2008.
|Bank of America CEO Moynihan must testify about the bank's integration of Countrywide Financial by May 18|
New York State Supreme Court Judge Eileen Bransten ruled last month that Moynihan's testimony is necessary because he oversaw the integration of Countrywide into Bank of America, and MBIA argues Bank of America is liable for Countrywide's alleged fraud.
The judge's ruling states that "the knowledge Moynihan gained as part of the
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