Insurer Sues Credit Suisse Units Over $1.8B In RMBS

Law360, New York (October 17, 2011, 10:14 PM EDT) -- Assured Guaranty Municipal Corp. sued two units of Credit Suisse Group AG in New York state court Monday, claiming they misrepresented the riskiness of $1.8 billion in residential mortgage-backed securities, breaching their agreement with Assured to insure the securities.

The suit claims DLJ Mortgage Capital Inc., which assembled the securities, falsely vouched for the quality of the loans when Assured agreed to insure the securities and refused to repurchase, cure or substitute the loans that didn't conform to specified quality-control standards, exposing the insurer to hundreds...
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