NY Court Keeps Banks' Fraud Suit V. MBIA Alive

Law360, New York (February 18, 2010, 4:03 PM EST) -- A New York court has refused to dismiss a lawsuit in which some of the world's largest financial institutions, including ABN Amro Bank NV and Citibank NA, accuse MBIA Inc. of devising a fraudulent restructuring in order to avoid paying out insurance policies the company offered on financial products.

The Supreme Court of the State of New York for New York County on Wednesday denied a motion made by MBIA to dismiss the suit, which claims the 2009 restructuring of MBIA Insurance Corp. and MBIA Insurance...
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