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Dec. 13 (Bloomberg) -- MBIA Inc. jumped after a settlement with Morgan Stanley ended credit-default swap guarantees on commercial-mortgage debt and the bank said it will withdraw from a lawsuit challenging the bond insurer’s 2009 restructuring.
MBIA, once the world’s biggest bond insurer, rose 94 cents, or 8.3 percent,to $12.34 as of 8:53 a.m. in pre-market trading in New York. The shares have soared 66 percent since Nov. 25 on optimism that the bond insurer will end litigation and soured mortgage guarantees that have prevented it from reentering the business of guaranteeing municipal bonds.
MBIA, based in Armonk, New York, will withdraw a suit relating to residential mortgage backed securities against Morgan Stanley and the bank plans to end its participation in litigation challenging the split of the insurer’s business, according to a statement today distributed by Business Wire.
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