MBIA Said To Pay $350m To Settle SocGen Lawsuit

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MBIA, the bond insurer that reached a $1.7bn settlement with Bank of America this week, will pay $350m Societe Generale to resolve litigation, a person familiar with the matter said.

Bloomberg reports that the agreement settles claims over the insurer’s 2009 restructuring, which Societe Generale and other banks had sought to reverse, saying it exposed them to losses by transferring assets.

Societe Generale is the last bank to settle with MBIA in the case following the accord with Bank of America, and the agreement will end the litigation against the insurer.

MBIA won state regulatory approval in 2009 to move the company’s guarantees on state and municipal bonds out of its MBIA Insurance unit, which backed some of Wall Street’s most toxic mortgage debt. More than a dozen financial institutions then sued claiming they were harmed as holders of financial guarantee policies.

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MBIA Said to Pay $350 Million to Settle SocGen Lawsuit

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