This is what I suggested in my posting of August 15th, see "$4B settlement before Aug 18th preceding."
Makes sense to me or some variation. We should get the next generation of investment banking brains at Harvard Business School to cut their teeth on means and methods of resolving the Countrywide MBIA conflict. There has to be an inventive creative proposal that would be beneficial to all.
With MBI's market cap at less than $1.4 billion and settlement numbers from BAC running upwards of $4 billion there has to be an "out of the box" solution.