Banks Ask Court to Reinstate MBIA Lawsuit

Suit questions bond insurer's 2009 restructuring.

New York’s highest court was asked by Bank of America Corp., UBS AG and other institutions to reinstate their lawsuit claiming that bond insurer MBIA Inc.’s 2009 restructuring was intended to defraud policyholders.

A lower-court decision throwing out the lawsuit improperly blocked claims the banks could bring as creditors, their lawyer told the New York State Court of Appeals at oral arguments yesterday in Albany.

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