(Reuters) – Bond insurer Financial Guarantee Insurance Co said it had reached an agreement with Bank of America Corp to settle litigation related to nine second-lien residential mortgage-backed securitizations FGIC had insured.
FGIC said it received $584 million in cash and that all outstanding litigation between the company and Bank of America had now been resolved.
The No.2 U.S. bank, which reported a first-quarter loss on Wednesday due to a $6 billion litigation charge, said that seven of the nine securitizations had already been settled.
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