MBIA Surges After Report Insurer Settled with Bank of America

MBIA Inc. (MBI) surged as much as 57 percent after Dow Jones Newswires reported Bank of America Corp. will pay $1.6 billion of cash as part of a settlement with the bond insurer of mortgage-bond litigation.

MBIA was up 43 percent to $14.10 at 12:25 p.m. in New York after earlier climbing to as high as $15.45. The intraday jump is the most ever.

The settlement includes a $500 million line of credit, Dow Jones reported today, citing people familiar with the matter.

To contact the reporter on this story: Mary Childs in New York at mchilds5@bloomberg.net

To contact the editor responsible for this story: Shannon D. Harrington at sharrington6@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.