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What: Shares of mortgage insurer MBIA
So what: While terms of the settlement weren't immediately disclosed to the public, the news removes another bit of uncertainty surrounding MBIA shares. "The settlement of this case is another important step toward resolving all of the litigation contesting our transformation," MBIA spokesman Kevin Brown said.
Now what: Expect the momentum to continue in the short term. If the Aurelius news wasn't good enough, Wall Street analyst MKM Partners believes there's a good chance that Bank of America, Societe Generale, and Nataxis may also settle their lawsuits with MBIA ahead of next Friday's pretrial hearing. With the stock still down about 25% over the past three months, short-term speculators might even have some room to bet on that optimism.
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