MBIA (MBI) gains 6.7% after Judge Rakoff issues what may be a precedent-setting ruling in...

|About: MBIA Inc. (MBI)|By:, SA News Editor

MBIA (MBI) gains 6.7% after Judge Rakoff issues what may be a precedent-setting ruling in Assured Guaranty vs. Flagstar. The ruling - says a lawyer - puts to rest the main argument MBS originators like BofA and JPMorgan have put forth to counter insurers' claims their breaches of representations and warranties did not cause losses. BAC and JPM both down about 1% premarket.