If anything, the latest action by BAC is proof that this is extremely likely to end in a settlement. MBIA will face a liquidity shortfall if there's a long trial and BAC could face additional lawsuits assuming the trial doesn't go their way. The trial would be a lose-lose scenario. The question is.. how big will the settlement be? Some think $1-$2 billion, others think closer to $5 billion. That's what this will come down to.