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Recent maneuvers by Bank of America (BAC) could mean a settlement of its legal disputes with...

Recent maneuvers by Bank of America (BAC) could mean a settlement of its legal disputes with MBIA (MBI +6.5%) is coming in early 2013, writes CreditSights. It's likely both issues - MBIA's claims BofA owes it billions over bad mortgages, and BofA's claim MBIA owes it billions over CDS - would be part of a comprehensive deal.
Comments (3)
  • MexCom
    , contributor
    Comments (3050) | Send Message
     
    They are buying their bonds. And, they are going up in value. Any settlement could be a complete wash from the capital gain on the purchased bonds - maybe even a profit! While they wait - the interest is being paid.
    13 Dec 2012, 04:14 PM Reply Like
  • harris m freedman
    , contributor
    Comments (104) | Send Message
     
    is this good or bad for the stock holders?
    13 Dec 2012, 06:53 PM Reply Like
  • gwynfryn
    , contributor
    Comments (3893) | Send Message
     
    I'd say good, on balance, but not so good for the legal profession; litigation instead of "amicable" settlement is just money down the drain, from the point of view of the contending parties.
    14 Dec 2012, 08:58 AM Reply Like
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