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

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