Bank of America boss sheds shares

The Chief Executive Officer of the Bank of America, Brian Moynihan, has sold 9,527 shares of the US lender at $5.56 each, an announcement which came on the same day the bank suffered a legal setback in a dispute with bond insurer MBIA.

MBIA has accused Bank of America subsidiary Countrywide Financial of being less than forthcoming about the risk profile of $20bn worth of mortgage-backed securities that MBIA was asked to insure.

MBIA's beef dates back to a period spanning from 2005 to 2007, the period before mortgage backed securities became more toxic than a three-year-old British Rail sandwich laced with arsenic.

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Justice Eileen Bransten of the New York State Supreme Court ruled that in order to demonstrate fraudulent intent on the part of Countrywide, MBIA only needs to show that Countrywide had misled it about the instruments it insured, not that the cause of MBIA's losses were due to the alleged misrepresentation.

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