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MBIA Climbs on Prospects of Resuming Municipal Insurer

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Bond insurer MBIA Inc. gained the most in more than two months after a court development raised prospects it may resume guaranteeing city and state debt.

The company has held off insuring municipal bonds because of a 2009 lawsuit by Bank of America Corp., JPMorgan Chase & Co., Barclays Plc and 15 of the world’s largest financial companies challenging MBIA’s decision to separate its municipal bond insurance business from its structured-finance guarantees. JPMorgan and Barclay’s are now withdrawing from the litigation.