Last week, the New York Attorney General disclosed that it would be investigating securitization and underwriting practices by Countrywide, which was acquired in 2008 by Bank of America (NYSE:BAC). In this video, Motley Fool financial analysts Matt Koppenheffer and David Hanson discuss why this may push BAC to settle in its lawsuit with MBIA (NYSE:MBI). MBIA claims that Bank of America still owes the company billions over bad mortgages that it wants the bank to buy back; allowing the case to continue might strengthen the Attorney General's case against BAC. Matt and David also talk about the dire straights MBIA is facing financially, and why this settlement might be life or death for the company.
- Mar 4, 2013 at 3:11PM