HSBC Pulls Out Of $5.4B MBIA Restructuring Suit

Law360, New York (December 12, 2011, 3:37 PM ET) -- An HSBC Holdings PLC affiliate will drop out of a suit filed by a number of banks claiming that bond insurer MBIA Inc. had fraudulently pulled $5.4 billion out of its insurance unit during its 2009 restructuring, HSBC said Monday.

HSBC Bank USA NA filed a stipulation and order of discontinuance with a New York state court in Manhattan on Monday.

“The plaintiffs are fully committed to this litigation to undo MBIA’s $5 billion fraudulent conveyance,” said Robert J. Giuffra Jr. of Sullivan & Cromwell LLP,...
To view the full article, register now.