MBIA Insurance Corp. voluntarily dismissed with prejudice its case against Bank of America Merrill Lynch, prompting analysts to speculate that a settlement could be reached soon.

Quinn Emanuel Urquhart & Sullivan, counsel for MBIA Insurance, filed a document Monday in the New York State Supreme Court that said: "All claims, counterclaims, and cross-claims that were asserted or could have been asserted by either party shall be voluntarily dismissed with prejudice," meaning MBIA is barred from filing another case on the same claim.

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