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What: Shares of bond insurer MBIA
So what: In early 2009, MBIA split its insurance operations, creating a new subsidiary -- National Public Finance Guarantee Corporation -- that would handle all of the company's public finance business. The banks on the other end of MBIA-insured structured products weren't thrilled with this because they thought that if MBIA was able to make National Public Finance a separate entity, then the financial strength and claims-paying ability of the battered structured-product business would be hurt. The lawsuit has thus far tangled up National Public Finance, affecting its ability to write new business. Yesterday, though, MBIA announced that both JPMorgan Chase
Now what: The retreat of JPMorgan and Barclays is a start for MBIA in getting the litigation resolved, but there are still quite a number of banks -- including Bank of America
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