Now I don't claim to be an "MBA" student, (NYSE: MBI)

NEW YORK - Now MBIA does not claim to be an A student but it is trying to be. MBIA which is the largest bond insurer in the United States with approximately 400 employees has fallen on rough times since 2007. MBIA provides reinsurance for a number of financial instruments. As the financial market collapsed, MBIA and other re-insurers had to pay for catastrophic losses. This led to the bankruptcy of the second largest bond insurer Ambac financial, late last year.

Today, shares of MBIA finished 10% higher. The company rallied after it secured a victory in court over its restructuring plan. The ruling would allow the company amnesty of its municipal bond business from the catastrophes of its structured finance unit.

Banks have sued MBIA over this initiative as it has left its finance unit under capitalized while its municipal bond business remains strong. In essence, it is like cutting off the arm to save the patient. In corporate finance many companies would be able to survive if they only allowed creditors to lay claim to their bad assets.