New York’s Highest Court Allows Financial Guarantee Insurance Policyholders to Pursue Claims Against MBIA for Allegedly Unlawful Restructuring

Summary: On June 28, 2011, the Court of Appeals of New York handed down a decision in ABN AMRO Bank N.V. v. MBIA Inc. The court held that the ABN and other banks that had purchased financial guarantee insurance policies from MBIA could pursue claims against MBIA arising from MBIA’s 2009 corporate restructuring. The attached Client Alert examines this significant procedural victory for the plaintiff banks.