MBIA Using $5B Breakup To Coerce Settlements, Banks Say

Law360, New York (June 1, 2012, 5:29 PM EDT) -- Banks crying foul over New York regulators' approval of MBIA Inc.'s $5 billion restructuring said during a bench trial Friday that the deal was a ruse to pressure structured finance policyholders to settle their claims for less than they were worth.

Robert J. Giuffra Jr. of Sullivan & Cromwell LLP, who represents Bank of America Corp. and Societe Generale SA, told Judge Barbara R. Kapnick that internal MBIA documents showed that the monoline insurer's executives hoped the restructuring would make MBIA appear "near death" to convince...
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