MBIA Surges After Report Insurer Settled with Bank of AmericaMary Childs
MBIA Inc. 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.