MBIA settles with Bank of America over allegedly defective mortgages

MBIA will receive about $1.6 billion and Bank of America will get warrants for a 5 percent stake in MBIA

Financial services company MBIA Inc. is settling with Bank of America Corp. and its Countrywide unit after five years of litigation over Bank of America’s allegedly defective securitized mortgage loans, Bloomberg reports.

The deal stipulates that MBIA will get about $1.6 billion, and Bank of America will receive warrants for a 5 percent stake in MBIA.

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