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Bank of America leads big-bank rally

May. 07, 2013 @ 12:00 AM

NEW YORK -- Bank of America led a rally in big-bank stocks in mostly quiet trading on Monday. Stock indexes ended little changed following a record-setting run last week.

News that Bank of America and MBIA, a bond-insurance company, had reached a settlement over a long-running dispute propelled both companies' stocks up. BofA will pay $1.7 billion to MBIA and extend the troubled company a credit line.

MBIA soared 45 percent, or $4.46, to $14.29. Bank of America gained 5 percent, or 64 cents, to $12.88, making it the leading company in the Dow Jones industrial average.

The Dow slipped 5.07 points to close at 14,968.89. The Standard & Poor's 500 index crept up 3.08 points to 1,617.50, a gain of 0.2 percent.

In Monday trading, the Nasdaq composite rose 14.34 points to 3,392.97, an increase of 0.4 percent. The price of crude oil edged up 55 cents to $96.16 and gold rose $3.80 to $1,468.10 an ounce.

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