NEW YORK (AP) — MBIA Inc. has decided not to pursue a lawsuitagainst Bank of America Corp.'s Merrill Lynch unit.
|In a filing Tuesday with a New York state court, the two sidessaid they agreed to voluntarily dismiss the case and pay their ownlegal fees. Insurer MBIAhad sued the bank saying that Merrill hadbought insurance in 2006 and 2007 on $5.7 billion ofbonds it knew would fall in value.
|MBIA shares soared 6.9 percent to $9.04 on hopes that Bank ofAmerica had offered it a settlement. The dismissal is a sign thatBank of America is trying to put its litigation issues behind it.Last week it reached an $8.5 billion settlement with institutionalinvestors on mortgage bonds.
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