MBIA Suit Dismissal Strips Banks of Creditor Rights, Lawyers Say in Appeal - Bloomberg

LOL so many of the foreclosed upon evicted homeowners, were stripped of their CIVIL rights, that this would be laughable. I do protest anyone's rights being stripped by any court.

MBIA Suit Dismissal Strips Banks of Creditor Rights, Lawyers Say in Appeal - Bloomberg: "Bank of America Corp. (BAC), UBS AG (UBSN) and other financial institutions said a New York appeals court stripped them of rights under state debtor and creditor laws when it tossed out a lawsuit challenging MBIA Inc.’s 2009 split into two bond insurers, according to a brief filed today with the state’s highest court.

A lower court in January granted MBIA’s request to dismiss the so-called fraudulent conveyance lawsuit, which claimed the split -- which New York’s insurance regulator approved -- was a move to avoid its obligations to pay policyholders and defraud creditors. The banks are challenging the regulator’s decision under New York’s Article 78 in a separate lawsuit.

Because the banks’ debtor and creditor claims “cannot be brought in an Article 78 proceeding challenging the superintendent’s determinations, the majority stripped plaintiffs entirely of their” debtor and creditor law and common law rights, lawyers for the banks argued in papers filed today with the New York Court of Appeals in Albany. A five-judge appellate panel dismissed the suit Jan. 11 in a 3-2 decision."