Judge Trims Bond Insurer's MBS Suit Against Credit Suisse

Law360, New York (June 1, 2011, 10:30 PM EDT) -- A New York state judge on Wednesday trimmed a suit brought by bond insurer MBIA Insurance Corp. against Credit Suisse Group AG units, saying MBIA’s failure to investigate the mortgage-backed securities it was insuring barred its fraud claim.

MBIA accuses Credit Suisse affiliates Credit Suisse Securities (USA) LLC, DLJ Mortgage Capital Inc. and Select Portfolio Servicing Inc. of inducing it to insure payments on a pool of mortgage-backed securities, which resulted in serious losses when that market imploded.

But Judge Shirley Warner Kornreich said MBIA’s fraud...
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