BofA Settles ‘Big Kahuna’ Mortgage Lawsuit as Another Case Looms
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Bank of America Corp. Chief Executive Officer Brian T. Moynihan, who once vowed to wage “hand-to-hand combat” in lawsuits over faulty mortgages, settled one big fight with MBIA Inc. yesterday as another remains unfinished.
The $1.7 billion agreement, which ends a five-year legal tussle with the bond insurer, removes another hangover from Bank of America’s 2008 takeover of Countrywide Financial Corp. While a separate $8.5 billion proposed settlement over claims tied to bad mortgages is awaiting court approval, it shows Moynihan’s strategy is working, analysts said. The lender’s shares climbed 5.2 percent, the most in five months.