Bond insurer MBIA, which stands to benefit from a massive settlement with Bank of America and Flagstar Bancorp over mortgage bonds it guaranteed, settled another case with Société Générale, the Wall Street Journal reports.
But instead of MBIA benefitting from this settlement, the paper says in this case, MBIA agreed to pay $350 million to settle a legal dispute with Société Générale.
The paper says the deal will reduce MBIA’s legal exposure on guarantees tied to commercial mortgage-backed securities by approximately $4.2 billion.
