ABK filed many lawsuit for big banks.
Basically, he claimed that in their insurance contract, banks are not allowed to pact subprime loan into there securitized morgtage backed bonds.
I believe ABK said the truth.
I don't think ABK will win the case quickly. But the lawsuit will change everything if ABK has chance to win.
Most likely, the banks will make some kind of agreement with ABK and MBI or PMI,etc out of court.
If ABK survived from this crisis, it has potential to be a $50 stock in five years.
One thing to remember, it's bond still rated as Junk. It may file bankruptcy at any time.
MBI is much safer compared with ABK.