NEW YORK (Reuters) – Banks challenging bond insurer MBIA Inc's 2009 restructuring don't have to answer questions about whether they pushed state senators to start an investigation, a New York judge ruled on Tuesday.
“What the Senate chose to do or why they chose to do it” was not a matter for the court case, JusticeBarbara Kapnick said.
Two state senators said on May 16 they were considering whether to investigate the approval of MBIA's restructuring, the day after proceedings began in Kapnick's court began.
Bank of America Corp and Societe Generale are seeking to overturn the restructuring, saying that as policyholders they were harmed when $5 billion was siphoned from MBIA's structured-finance arm to its municipal-bond arm.
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