MBIA Admits Errors In 2009 Restructuring Filing

Law360, New York (February 8, 2012, 5:54 PM EST) -- MBIA Inc. admitted Tuesday that it made financial errors in its 2009 restructuring application with the insurance regulators, saying it overstated the amount of money that would be available to pay policyholders — including banks that have accused the insurer of a $5.4 billion fraud — in projected worst-case scenarios.

MBIA explained the errors in a suit by banks who have accused the insurer of making more than $5.4 billion in alleged fraudulent transfers between the old “unhealthy” financial instruments insurer, New York-based MBIA Insurance, and...
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