The game of legal cat-and-mouse between MBIA Inc. (NYSE: MBI ) and Bank of America Corp (NYSE: BAC ) shifted today in favor of the Armonk, New York-based financial guarantee insurer. In a rare scenario in which B of A was not the accused, a New York Supreme Court judge silenced the cries of multiple banks, including B of A, over MBIA Inc. (NYSE: MBI )'s decision to bifurcate and restructure its business between municipal bonds and mortgage-backed securities in 2009. The banks claimed that the asset transfer was unfair because it left the entity exposed to deteriorating MBSes underfunded. The judge's decision was critical for MBIA as the pending ligation against it was hindering opportunities in the municipal markets. S&P recently cut its credit rating to junk. The market knows a good legal decision when it hears one. MBIA Inc. (NYSE: MBI )'s stock soared immediately after the decision was made public.