BofA may be resisting partly because of a huge insurance claim it has hanging over mbia's head.
With several critical court rulings expected in the next few months, mbia versus BofA is likely to come to a close this year.
If mbia's Brown can wrestle Bank of America into a settlement even remotely close to the 3 billion he's seeking, mbia's stock could more than double.
A University of Northern Illinois graduate, Brown rose to chief executive of Fireman's Fund Insurance in 1991 after toiling away inside the firm for 17 years.
The insurance company has a market capitalization of just 2 billion, down from nearly 10 billion before the financial crisis.The insurer covered billions of dollars in risky derivatives on commercial mortgage-backed securities that also went bad."mbia seems determined to avoid all responsibility for its financial position and for the insurance policies it sold he says.Brown says he'd love to settle the derivatives claims with BofA: "The only reason there's not sufficient cash within mbia to settle with them is because Bank of America won't accept our putbacks.".Another so-called monoline insurer, Assured Guaranty, won a critical ruling in February against Flagstar Bank that could apply equally well to mbia.This would allow mbia to get back to its core business of insuring bonds and would likely send its nyse-listed stock soaring.Mbia's Brown, 64, is a grizzled veteran of the insurance business-an actuary by training.Bank of America spokesman, lawrence, grayson says the bank will settle-with "reasonable" counterparties.Mbia survived-just barely-and now its chief executive, Joseph "Jay" Brown, wants payback.Brown acknowledges this is ultimately a dispute over money: how much of Countrywide's losses BofA will eat and how much will stick with mbia.

Bank of America over billions of dollars in losses that mbia says were caused by shoddy mortgage-backed securities issued by BofA's Countrywide Financial unit during the heady days of the housing bubble.
Mbia says nearly half the mortgages-almost 200,000-backing those securities violated Countrywide's contract with the insurer and contained "indisputable material breaches." "It got out of control Brown says of Countrywide's lending operations between 20"There was so much money made issuing the securities, the machine itself became.
Mbia in Armonk,.Y., hij oogcontact maken tijdens de seks mute evidence of the crisis that nearly destroyed the once mighty municipal-bond insurer after it strayed into the risky world of insuring mortgage-backed bonds.
Empty cubicles with Aeron chairs and elegant brass desk lamps fill the brown granite headquarters.According to mbia allegations, nearly all of the files in a random sample of 6,000 loans across 15 pools breached Countrywide's contract with mbia in some way, including many that misstated the loan purpose or overstated credit ratings.Using court-approved extrapolation, mbia concluded that more than half the mortgages "indisputably" violated its contracts and should be repurchased by BofA for 12 billion.What it found was shocking.Idea, death AND taxes.Mbia is a shell of the company it once was.This legal fight, which he seems unwilling to back down from, is yet another bit of Countrywide legacy trouble plaguing embattled BofA Chief Brian.