Bank of America Corp. and Societe Generale SA appealed a judge's decision upholding regulatory approval of bond insurer MBIA Inc.'s 2009 restructuring, which they say harmed them as policyholders, Bloomberg News reported today. New York Supreme Court Justice Barbara Kapnick was wrong when she dismissed a lawsuit by the banks seeking to reverse approval by the state’s insurance regulator, they said in court papers filed yesterday. 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 its MBIA Insurance Corp. unit, which guaranteed some of Wall Street’s most toxic mortgage debt. The banks said during a month of oral arguments last year that the approval was based on inaccurate and incomplete information provided by Armonk, N.Y.-based MBIA.
