The Daily Docket: BofA and FDIC Settle Failed Bank Suits

The Federal Deposit Insurance Corp. and Bank of America Corp. have settled their long-running battle over who is ultimately responsible for losses tied to the sale of mortgage securities to more than two dozen failed banks. Read the Daily Bankruptcy Review story in The Wall Street Journal.

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An attempt by television personality Marcus Lemonis and Dippin’ Dots owner Fischer Enterprises LLC to reopen Crumbs Bake Shop Inc. stores moved closer to reality after a deadline to trump the pair’s $6.5 million offer for the chain passed with no other bidders emerging. Read Sara Randazzo’s story in WSJ.

A bankruptcy judge said Thursday that Jon S. Corzine and other former MF Global Holdings Ltd. executives and employees could tap more insurance money to pay for defense costs but called the decision a “stopgap”, as he decides whether they must continue seeking court permission to access the cash. Read Joe Checkler’s story in the Journal.

Federal prosecutors are scrutinizing whether employees inside and outside General Motors Co.’s legal department concealed evidence from regulators about a faulty ignition switch, potentially delaying a recall of vehicles with the fatal problem, according to people familiar with the matter, WSJ reports.

Argentina’s proposal to swap its U.S. law bonds for debt governed by local law is illegal and cannot be carried out, U.S. District Judge Thomas Griesa said Thursday at a hearing in New York, reports WSJ.

Credit Slips’ Anna Gelperin has some thoughts on the real reason Argentina’s Cristina Fernandez de Kirchner has proposed a law authorizing the executive to reroute payments on the restructured bonds out of New York.

New World Resources Plc expects its creditors to sign off on a restructuring plan next week designed to avoid bankruptcy, reports Bloomberg.

Forbes says Lilliputian Systems, an MIT spin out that raised over $140 million in its prime to bring portable fuel cells to market, is a victim of the “MIT Curse.”

 Write to Pat Fitzgerald at [email protected]. Follow him on Twitter @PatFitzgerald23.