MBIA Inc. will get about $1.6 billion as part of a deal to end five years of litigation against Bank of America Corp. and its Countrywide unit over claims of defective securitized mortgage loans, Bloomberg News reported yesterday. As part of the settlement, Bank of America will get warrants for a 5 percent stake in MBIA. MBIA first sued Countrywide in 2008 in New York state Supreme Court in Manhattan for fraud and breach of contract related to securitized home equity loans. Armonk, N.Y.-based MBIA guaranteed payments to investors in the securities. Charlotte, N.C.-based Bank of America acquired Countrywide that year. MBIA claimed that the loans were riskier than represented.
