Bank of America, UBS Renew Demand for MBIA Insolvency Review

Four banks suing MBIA Inc. over the insurer’s 2009 restructuring renewed a request to a regulator to assess the finances of a unit that guaranteed toxic mortgage debt, citing “substantial additional evidence” it’s insolvent.

The lenders, including Bank of America Corp. and UBS AG, asked Department of Financial Services Superintendent Benjamin Lawsky for a “qualified” expert to review expected losses for MBIA Insurance Corp. The banks said they had data that “clearly demonstrates” the unit “cannot satisfy its policyholder claims in full,” Robert Giuffra, the banks’ lead counsel and a partner at Sullivan & Cromwell in New York, said in a Jan. 11 letter to Lawsky.