Banks Ask NY To Review MBIA's Books After $5.4B Fraud

Law360, New York (January 12, 2012, 12:18 PM EST) -- Banks suing MBIA Inc. over $5.4 billion in alleged fraudulent transfers during its 2009 restructuring said Wednesday that the bond insurer was on the brink of failure and asked New York state financial regulators to launch an independent review of its insurance arm.

In a letter to New York State Department of Financial Services Superintendent Benjamin M. Lawsky that was obtained by Law360, the remaining four banks involved in New York state court proceedings against MBIA said an independent review of MBIA Insurance's structured finance portfolio...
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