The New York State Insurance Department had many good reasons to approve the split of MBIA Inc. into two parts in 2009, the state’s attorney said Tuesday.

Rating agencies downgraded MBIA in April to June 2008. In response, the NYSID considered splitting it into two companies, according to David Holgado, the attorney defending NYSID in a lawsuit. One of the two companies would focus on insuring municipal bonds.

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