MBIA Can't Claim Admin Expenses In IndyMac Suit: FDIC

Law360, Washington (September 27, 2011, 5:30 PM EDT) -- Attorneys for the Federal Deposit Insurance Corp. told a Washington federal judge Tuesday that MBIA Insurance Corp. can't prove in its suit over the collapse of IndyMac Bank FSB that the losses the insurer sustained count as recoverable administrative expenses.

The agency is fighting off a suit from MBIA that claims that the FDIC, while acting as receiver for the failed bank, improperly prioritized the agency's own administrative expenses when it should have directed recovered money to the insurer. In this and similar cases, the FDIC...
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