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What: Shares of bond insurer MBIA
So what: In late December, the momentum started going in MBIA's direction in its quest to dismiss a lawsuit over its restructuring as both JPMorgan Chase
Now what: The ruling is good news for MBIA because it will allow the company to move forward with its restructuring efforts. The hope is that by having a separate public-finance insurance business (National Public Finance Guarantee Corp.), MBIA will be able to improve its ratings and get back to writing meaningful new business. Of course, while today's dismissal puts MBIA in a very good position, the banks could still appeal the decision. In addition, the banks still have an outstanding suit under Article 78 of New York's Civil Practice Law and Rules, seeking to nullify the approval letter that MBIA received from the New York State Insurance Department that gave the green light for the company's restructuring. There's definitely reason for MBIA shareholders to breathe a sigh of relief today, but they will still want to keep on the alert for the full resolution of the banks' challenge.
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