Skip to main content

Newsroom

May 7, 2013

BofA, MBIA Make Peace Over Loans

“Bank of America Corp. agreed to pay MBIA Inc. $1.7 billion to settle a dispute over soured mortgage securities, in the second-largest U.S. bank’s latest bid to reduce legal risks tied to its home-lending business.

“The pact is the fifth settlement the Charlotte, N.C., company has reached this year, totaling $16.9 billion in cash and other relief. News of the agreement sent shares of MBIA, an Armonk, N.Y., bond insurer, up 45%. Bank of America rose 5.2%.

“Clearing the decks legally has been one of Bank of America Chief Executive Brian Moynihan’s top priorities since he took over the lender in 2010, along with revitalizing the company financially.

“Bank of America has paid more than $45 billion during Mr. Moynihan’s tenure to settle disputes with other companies and probes by government officials, with many of the cases centering on the company’s 2008 acquisition of mortgage lender Countrywide Financial Corp. The company’s shares have advanced 66% over the past year amid a rally in bank stocks and its efforts to reduce legal uncertainty.”

***

Read full Wall Street Journal article here

In the News
Share

MEDIA REQUESTS

For media inquiries, please contact us at
press@bettermarkets.org or 202-618-6433.

Contact Us

For media inquiries, please contact press@bettermarkets.org or 202-618-6433.

To sign up for our email newsletter, please visit this page.

Name(Required)
This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

"* (Required)" indicates required fields

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact press@bettermarkets.org or 202-618-6433.

Donate

Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today