NY Says Errors Wouldn't Have Stopped $5B MBIA Restructuring

Law360, New York (May 22, 2012, 7:05 PM EDT) -- In a bench trial Tuesday, New York's insurance regulator downplayed errors in financial information used to evaluate its approval of MBIA Inc.'s $5 billion restructuring, including a $1.4 billion accounting mistake that banks challenging the deal claim is enough to scuttle the deal.

Bank of America Corp. and Societe Generale SA claim the restructuring never would have been approved if the $1.4 billion error — which miscalculated a surplus in data provided to regulators during a stress test when the restructuring was under review — had...
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