After more than four years in the legal system, MBIA Insurance Corp.’s suit against Bank of America is to go to summary judgment hearing on Dec. 12.

Some observers think that if MBIA wins on its breach of contract claims, Bank of America could be liable to pay MBIA Insurance $5 billion. If MBIA wins on claims of fraud and the judge awards punitive damages, Bank of America could be forced to pay MBIA Insurance some multiple of that.

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