Ambac: Upside From BofA’s FGIC Settlement And Litigation Reserve?

BTIG analyst Mark Palmer hints at likely resolution of Ambac Financial Group, Inc. (NASDAQ:AMBC)’s pending mortgage-related litigation against Bank of America Corp (NYSE:BAC).

Palmer is bullish that Bank of America Corp (NYSE:BAC) appears to be signalling intent to clean up its Augean litigation stables.

BofA’s litigation stance

Citing Ambac Financial Group, Inc. (NASDAQ:AMBC) CEO Diana Adams’ interaction with investors at meetings earlier this month, Palmer observes: “While her team had not seen movement from Bank of America Corp (NYSE:BAC) signalling its intention to settle litigation brought against it by the bond insurer, she was encouraged that the bank’s management continued to make it clear through both words and actions that...