NEW YORK (Reuters) – Bond insurer MBIA Inc's restructuring during the financial crisis must be annulled because it was based on bad information, a lawyer for banks challenging the restructuring said on Tuesday.
Robert Giuffra, a lawyer for Bank of America Corp and Societe Generale, made the argument in his opening statement in a case the banks brought against MBIA and the state insurance department to overturn the 2009 restructuring.
The reorganization of the Armonk, New York-based bond insurer, once the largest U.S. bond insurer, segregated MBIA's troubled structured-finance business from its traditional municipal bond insurance business.
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