MBIA Slams Credit Suisse In $296M MBS Coverage Case

Law360, New York (December 15, 2009, 5:02 PM EST) -- A unit of troubled bond insurer MBIA Insurance Corp. has hit three units of Credit Suisse AG with a lawsuit claiming they made false representations about the quality of mortgages in a 2007 mortgage-backed securities offering that has resulted in the insurer paying out more than $296 million in claims.

The complaint, filed Monday in the New York County Supreme Court, names Credit Suisse Securities (USA) LLC, DLJ Mortgage Capital Inc. and Select Portfolio Servicing Inc., saying the units of the Swiss banking giant made “pervasive...
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