Feb 13 (Reuters) - Bond insurer MBIA Inc is close to a $400 million settlement with Japan’s Nomura Holdings Inc , reducing its legal exposure to soured mortgage-backed securities by $3 billion, the Wall Street Journal said.
Under the settlement, which could be announced as soon as Thursday, MBIA will pay $325 million now and $83 million later if certain legal disputes “work out in its favor,” the daily said, without naming its source. ()
MBIA shares were up about 3 percent at $12.33 in afternoon trading on the New York Stock Exchange.
Bank of America Corp paid $1.6 billion to MBIA in May to settle a long-pending lawsuit and receive the right to buy a 4.9 percent stake in the company.