This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

MBIA's Shares Surge After Banks Drop Suit

Stocks in this article: JPM C BCS MBI UBS BAC RBS RBC MS

NEW YORK ( TheStreet) -- MBIA (MBI)'s stock was up on news that JPMorgan Chase (JPM) and Barclays (BCS) have withdrawn from a lawsuit opposed to the insurer's plans to divide its insurance units.

MBIA shares rose 76 cents at $11.12 on the news.

"This is obviously a good step forward, but there are another 15 plaintiffs that, at the moment, intend to pursue the lawsuit," said Morningstar analyst Jim Ryan.

The lawsuit by the banks opposed MBIA's restructuring, which include plans to create a new company called National Public Finance Guaranty Corp. that would be capitalized with $5 billion in assets and ready to write new business. The remaining MBIA assets would then be left a questionable amount of capital to cover guarantees, the banks' lawsuit argued.

Currently, only one of MBIA's competitor's, Assured Guaranty (AGO) is writing new business.

"Until they can start writing new business, we don't see much new outlook for them," said Ryan."There are still several lawsuits against them and there is the question about how much they will get back from the putbacks."

The move by JPMorgan and Barclays could set a precedent for other banks to drop their lawsuits preventing MBIA's reorganization. The court documents, which can be found on the insurer's website, show that other plaintiffs in the case include Royal Bank of Scotland (RBS), BNP Paribas (BNP), Citibank (C), HSBC (BCS), Credit Agricole (ACA), Merrill Lynch, Bank of America (BAC), Morgan Stanley (MS), Royal Bank of Canada (RBC), Societe Generale> (GLE), Wachovia, UBS (UBS) among others.

For more on the future of MBIA and the monolines check out, "Monolines: The End Of The World As We Know It."

--Written by Maria Woehr in New York.

To contact the writer of this article, click here: Maria Woehr.

To follow the writer on Twitter, go to

To submit a news tip, send an email to:

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs