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MBIA Inc.'s 2009 restructuring was approved by New York regulators because it protected all policyholders, including the banks challenging the decision, a lawyer for the bond insurer told a trial judge, Bloomberg News reported yesterday. Banks suing MBIA cannot prove their argument that the approval of the restructuring was "arbitrary and capricious," said Marc Kasowitz, an attorney with Kasowitz Benson Torres & Friedman LLP representing Armonk, New York-based MBIA. Justice Barbara Kapnick of the New York Supreme Court is hearing a nonjury trial on claims by Bank of America Corp. and Societe Generale SA that the February 2009 approval of MBIA's proposal by then-Superintendent Eric Dinallo was based on inaccurate and incomplete information and should be annulled.