MBIA Outflanked by BofA in Toxic Bond Battle

MBIA Outflanked by BofA in Toxic Bond Battle

Craig Ruttle/Bloomberg

Bank of America’s offer may provoke a liquidity crisis at MBIA that would bolster the lender’s case against a 2009 restructuring. MBIA is separately suing Bank of America, seeking to force it to buy back faulty loans in insured mortgage-backed securities, and it claims the bank is delaying that case to starve the insurer of cash.