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 (BAC +1.57%). 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 (MBI +0.58%). 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.
Did MBIA Get the Upper Hand on B of A?
By Matt Koppenheffer and David Hanson – Mar 4, 2013 at 3:11PM
NYSE: BAC
Bank of America
Market Cap
$389B
Today's Change
(1.57%) $0.81
Current Price
$52.57
Price as of October 24, 2025 at 4:00 PM ET
Will this push Bank of America to settle with MBIA?
About the Author
Matt is the head of the Coverage Team for The Motely Fool's premium products. Previously, he's been . Matt is a heavy user of AI tools and is working on harnessing them to help Fool members. Previously, Matt was GM of Motley Fool Ascent, led The Motley Fool Deutschland, has been an investor on various Fool services, and co-hosted the podcast "Where the Money Is". He also co-authored the book The Astonishing Collapse of MF Global. Matt started his career in San Francisco as a technology-focused investment banker and also worked at a $15 billion private equity company. When he's thinking about how to make Fools smarter, happier, and richer, you can usually find Matt running trails or making a mess in the kitchen. He's a graduate of the University of Pennsylvania, but is a lifelong fan of Penn State football.