MBIA's $5B Breakup Based On False Figures, Banks Say

Law360, New York (May 15, 2012, 5:20 PM EDT) -- New York state regulators' approval of bond insurer MBIA Inc.'s $5 billion restructuring must be reversed because it was based on inaccurate financial information, an attorney for Bank of America Corp. and Societe Generale SA told a New York state judge Tuesday.

The banks' attorney, Robert J. Giuffra Jr. of Sullivan & Cromwell LLP, said the banks didn't need to meet the much-ballyhooed and onerous "arbitrary and capricious" standard, which protects agency decisions as long as they're not random and unprecedented. Approval of MBIA's restructuring was...
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