Bank of America Corp. and Societe Generale SA go to court today seeking to overturn New York’s approval of MBIA Inc.’s restructuring in 2009, alleging that the bond insurer misled the regulator, Bloomberg News reported today. New York State Supreme Court Justice Barbara Kapnick is scheduled to begin a nonjury trial on the banks' claims that the approval of MBIA's proposal by then Insurance Superintendent Eric Dinallo was based on misleading information and violated insurance law. More than a dozen financial institutions sued MBIA and the insurance department in 2009 over the restructuring. Bank of America and Societe Generale are the only banks left in the litigation after JPMorgan Chase & Co., Morgan Stanley, UBS AG and others dropped out.
