Sounds like my workplace, but the reverse situation. Rather than risk an entire team leaving, they're transferring the problem manager out to another team, as she has been the source of tension and underbus-throwing.

The damage is done, though, for me at least. I'm actively looking and can't wait to leave. September is the best time of year to look, so maybe get your resume together and give it a shot? At least then you know you're doing something to change your situation. I find that with each step I take to leave (bookmarking jobs, writing cover letters, networking), I feel a little more empowered, even a bit wicked in a good way, like, "You think you've solved the problem. You think I will stick around for the next demoralizing beat-down. Little do you know...MUAH HA HA HA HA!"