MBIA Says Regulator Followed Law In $5B Breakup Approval

Law360, New York (June 5, 2012, 8:06 PM EDT) -- MBIA Inc. told a New York state judge Tuesday that Bank of America Corp. and Societe Generale SA's challenge to a regulator's approval of its $5 billion restructuring is invalid because state insurance law gives the regulator broad authority to oversee the insurer.

Marc E. Kasowitz of Kasowitz Benson Torres & Friedman LLP, who represents MBIA, told Judge Barbara R. Kapnick during a bench trial that MBIA's 2009 restructuring met the letter of the insurance law about insolvency.

Former Insurance Superintendent Eric Dinallo, who approved the...
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