Travelers Unit Won't Cover Madoff Suits, Conn. Banks Say

Law360, New York (April 3, 2012, 3:25 PM EDT) -- Three Connecticut banks took action against Travelers Co. unit St. Paul Mercury Insurance Co. in New York state court on Tuesday, saying the insurer had not fulfilled its obligation to cover losses caused by class action suits against the banks over investment in Bernard Madoff's Ponzi scheme.

Associated Community Bancorp Inc., Connecticut Community Bank N.A. and Westport National Bank told the New York Supreme Court that they held policies with St. Paul that required the insurance company to indemnify them for losses suffered in connection with...
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