MBIA’s decision to restructure the company in the wake of the financial crisis is the subject of a trial that begins in New York on Monday.
Bloomberg in a report says the remaining two plaintiffs in the case, Bank of America (BAC) and Societe Generale SA, are still challenging the state’s chief insurance regulator for allowing MBIA in the wake of the financial crisis to use $5 billion to create a second unit that banks allege was a shield to protect the insurer from large claims.
The original plaintiffs claimed MBIA misled the state’s insurance regulators. Over time, many of the plaintiffs dropped out of the case or settled. New York State Supreme Court Justice Barbara Kapnick will oversee the trial in Manhattan, Bloomberg said.
