Posted on 31 Jan 2011
At a hearing slated for Feb. 16, New York legislators will look into whether banks selling mortgage-backed securities and other structured financial products defrauded insurers.
Bond insurers’ exposure from the bonds during the financial crisis of 2008 caused many of them to seek rehabilitation or bankruptcy protection.
According to report in Reuters, an unnamed aide to Joseph Morelle, chairman of the state Assembly Insurance Committee, said the hearing would be held in New York City. The hearing, depending on what legislators discover, could be the first step toward possible legislation regarding the situation.