MBIA Inc. defeated a lawsuit by Bank of America Corp. and Societe Generale SA that sought to reverse approval of the bond insurer's $5 billion asset-transfer because it cut money available to cover their policy claims, Bloomberg News reported yesterday. Bank of America and Societe Generale had sought to reverse the state approval under New York laws that allow court challenges to state agency decisions. In 2009, New York Insurance Department Superintendent Eric Dinallo approved the split, allowing MBIA to move the company's guarantees on state and municipal bonds out of subsidiary MBIA Insurance Corp., which guaranteed some of Wall Street's most toxic mortgage debt. A second suit over the restructuring is still pending in New York state court.
