Three banks suing MBIA Inc. accused the bond insurer of deliberately withholding damaging financial projections from insurance regulators who were evaluating its transformation.

The banks' law firm, Sullivan & Cromwell LLP, made the accusation against MBIA in a sur-sur-reply memorandum of law filed confidentially on March 16. The Supreme Court of the State of New York, County of New York, where the case is being heard, made the memorandum public Monday.

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