Good news for insurers. AGOs win tonight is huge. BAC will eventually have to come to its senses. Right now they probably don't feel to compelled to settle since the latest triaxx attempt to overturn the settlement will move on irrespective. We'll need some patience here
I think the whole thing is absurd. The insurers such as MBIA didn’t do their own DD and now claims the product was defective so it absolves any responsibilities. BAC, without doing their DD before buying CW, can also claim CW was defective so therefore absolving their responsibilities. The rating agencies who pull the financial meltdown trigger are also absolving their responsibilities by hiding behind "opinion" and 1st Amendment.
The fact is everyone knew the risks but turned the other cheek to make quick profits. There are enough blames to go around therefore everyone should take some responsibilities including the insurers instead of the usual blame game.