MBIA Sues Merrill Over Credit Default Swaps

Law360, New York (April 30, 2009, 12:00 AM EDT) -- The insurance unit of MBIA Inc. has filed a lawsuit against Merrill Lynch & Co. over losses the firm suffered in connection with some $5.7 billion in credit default swap contracts.

The lawsuit filed Thursday in the Supreme Court of the State of New York by MBIA's insurance subsidiary, MBIA Insurance Corp., and LaCrosse Financial Products LLC, a special purpose vehicle, accuses Merrill of misrepresentations made in connection with a series of structured product transactions that Merrill Lynch set up between July 2006 and March 2007....
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