MBIA Breakup Trial To Put NY Regulators On The Defensive

Law360, New York (May 11, 2012, 5:08 PM EDT) -- A trial spearheaded by Bank of America Corp. that kicks off Monday will put New York's insurance regulators in the hot seat, forcing them to answer tough questions about why they approved troubled bond insurer MBIA Inc.'s 2009 restructuring to the chagrin of its bank policyholders, experts say.

The bench trial marks the first official round in the saga between the troubled monoline insurer and embattled Bank of America. About 20 banks sued the state's insurance regulators in 2009 to reverse their approval of MBIA's restructuring,...
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