Monolines' Claims Could Turn Up Heat On I-Banks

Law360, New York (June 2, 2009, 12:00 AM EDT) -- After taking a beating over subprime-related losses, both in paying out on policies and facing angry investors in court, monoline insurers MBIA Inc. and Ambac Financial Group Inc. in spring began to hit back at the financial institutions they claim caused their problems.

The lawsuits are standard breach of contract claims in state court, but they could have ramifications elsewhere. For the investment banks, the cases could mean billions in payouts to the monoline insurers and provide an opening for other plaintiffs in their bids to...
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