BUSINESS BRIEFING / FINANCE
TIMES WIRE REPORTS
Bank of America Corp., JPMorgan Chase & Co., UBS and 15 other financial companies sued MBIA Inc., saying the biggest bond insurer’s split of its guarantee business illegally cut their odds of getting paid on policies.
MBIA stripped $5 billion of assets out of its MBIA Insurance Corp. division to fund a new unit amid “an ongoing financial crisis that has made it increasingly likely that MBIA Insurance will have to pay out billions” of dollars, according to the complaint filed in New York State Supreme Court in Manhattan.
The case adds to two previous lawsuits filed by funds over the February restructuring by Armonk, N.Y.-based MBIA, which New York State Insurance Superintendent Eric R. Dinallo had approved.
