MBIA To Pay $325M To Settle Nomura MBS Liabilities

Law360, New York (February 13, 2014, 5:25 PM EST) -- Bond insurance giant MBIA Inc. will pay $325 million to end its guarantees of Japanese investment bank Nomura Holdings Inc.'s tanked mortgage-backed securities, taking another step to limit the exposure that almost drove it to bankruptcy after the financial crisis, according to a source familiar with the matter.

MBIA's downside exposure could have been as much as $3 billion if the policy had stayed in effect for 20 to 30 years, the source said. Today's deal could be joined by another $83 million payment down the...
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