BofA loses court claim over bond insurance

Bank of America has lost a court case against a regulator the bank claims should not have permitted bond insurer MBIA to move billions in cash between subsidiaries, reports FT.com.

“BofA and 20 other financial groups including Morgan Stanley had sued Eric Dinallo, former superintendent of the New York State Insurance Department, arguing that he should not have allowed MBIA to transfer $5bn from a subsidiary after the financial crisis threatened the insurer’s viability,” the report explains.

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