MBIA, BofA Strike Major $1.7B MBS Settlement

Law360, New York (May 6, 2013, 6:56 PM EDT) -- Bank of America Corp. agreed Monday to pay $1.7 billion to settle claims from the bond insurer MBIA Insurance Corp. over the bank’s allegedly faulty mortgage-backed securities, a major deal that ends litigation for two companies scarred by the 2008 financial crisis.

The settlement, which ends claims that Bank of America’s Countrywide Home Loans Inc. misled MBIA about the quality of its securities, also allows the bank to purchase a 4.9 percent stake in the insurer at a price of $9.59 per share, according to a...
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