Insurer MBIA (NYSE:MBI) fell as much as 11% in after-hours trading Monday when the news that it lost a pretrial judgement in its fight against Bank of America (NYSE:BAC) reached investors. The continued battle stems from allegations that B of A's acquired Countrywide division misrepresented loans to MBIA, which resulted in losses.
If MBIA wins the case, Bank of America would be responsible for buying back the loans -- which would be costly. In the video below, Motley Fool contributor Jessica Alling discusses the most recent determination, how it might be a good sign for Bank of America, and what investors should do next. 

Fool contributor Jessica Alling has no position in any stocks mentioned. The Motley Fool owns shares of Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.