MBIA Says $5B Split Meant to Revive Municipal Bond Market

Law360, New York (June 4, 2012, 6:45 PM EDT) -- MBIA Inc. said Monday during a bench trial that the purpose of state regulators' 2009 approval of the monoline insurer's $5 billion restructuring was to unfreeze the public finance markets while still protecting the very bank policyholders now challenging the approval.

Marc E. Kasowitz of Kasowitz Benson Torres & Friedman LLP, who represents MBIA, said Bank of America Corp. and Societe Generale SA were "flat wrong" in their assertion that the restructuring ripped off structured finance policyholders in favor of municipal bond policyholders and MBIA's stockholders...
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