DRAGHI LESS THAN ZERO
More details on Bank of America's $1.7 billion fraud settlement with MBIA.
MBIA Shares Leap 42% on Settlement With Bank of America
The five-year battle between bond insurer MBIA and Bank of America over mortgage bonds appears to be reaching a settlement, a boon for struggling MBIA.
BofA will pay MBIA cash of about $1.6 billion as well as some IOUs bringing the total amount to 1.7 billion. In addition, Bank of America will provide a credit line to MBIA of $500 million. BofA will also take a stake in MBIA’s holding company of roughly 5%.
MBIA shares leapt 42% to $13.97 after WSJ broke the news.