RBS Latest To Exit $5B MBIA Restructuring Suit

Law360, Washington (November 14, 2011, 6:29 PM EST) -- The Royal Bank of Scotland PLC on Friday became the most recent of several banks to withdraw as plaintiffs from an action alleging MBIA Inc. fraudulently pulled $5.4 billion out of its insurance unit during its 2009 restructuring.

The banks allege the restructuring was fraudulent because it stripped $5.4 billion in cash and securities out of MBIA's profitable public finance insurance business and transferred it to an Illinois subsidiary. In January, a New York appeals court threw out the suit, holding that the banks couldn’t pursue...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.