MBIA Hid 'Very Dark' Loss Projections, Banks Say

Law360, New York (April 9, 2012, 2:36 PM EDT) -- MBIA Inc. hid “very dark” loss projections over mortgage-backed securities from New York insurance regulators before getting approval for its 2009 restructuring, a group of banks suing the bond insurer said in court documents filed publicly Monday.

According to the documents filed in New York Supreme Court in New York County, MBIA did not tell the New York Insurance Department and its commissioner, Eric Dinallo, about a September 2008 Lehman Brothers study that found that the bond insurer would lose around $7.7 billion on 15 collateralized...
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