Bruce Berkowitz, whose bets on financial stocks helped him beat 99 percent of rivals last year after what he called a “horrible” 2011, made about $140 million as shares of mortgage insurer MBIA Inc. surged following a legal settlement with Bank of America Corp.
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, a person familiar with the matter said.
Most U.S. stocks rose, led by financial shares, as the Standard & Poor’s 500 Index extended its rally past 1,600. The euro fell as European Central Bank President Mario Draghi said policy will remain accommodative and the ECB will act again to boost growth if needed.
Bank of America Corp. and Wells Fargo & Co. violated terms of a nationwide settlement reached last year over banks’ residential mortgage foreclosure practices, New York Attorney General Eric Schneiderman said.
New York Attorney General Eric Schneiderman said he will announce new enforcement actions against major financial institutions as part of his effort to “protect New York homeowners” after calling the first such lawsuit last year a “template” for future litigation.
Bank of America Corp. can’t sue to recover $1.75 billion in investor losses stemming from a mortgage-fraud scheme at failed lender Taylor, Bean & Whitaker Mortgage Corp., the Federal Deposit Insurance Corp. told a judge.