NY Regulator Balks At Banks' Subpoenas In MBIA Cases
By Eric Hornbeck
Law360, New York (March 9, 2012, 7:16 PM ET) -- New York's insurance regulator shouldn't have to give several banks more of its internal communications related to the $5 billion restructuring of bond insurer MBIA Inc., a state attorney told a pair of federal and state judges during a rare joint hearing Friday.
The three separate federal and state court cases all revolve around allegations that the bond insurer fraudulently pulled $5.4 billion in cash and securities out of its insurance unit during its 2009 restructuring. A group of hedge funds and banks have sued MBIA...