FGIC Must Respond To Countrywide's Questions In MBS Suit

Law360, New York (August 14, 2012, 7:32 PM EDT) -- A New York state judge told Financial Guaranty Insurance Co. on Tuesday to stop hemming and hawing and fully answer questions from Bank of America Corp.'s Countrywide Financial Corp. in the monoline insurer's billion-dollar suit over Countrywide mortgage-backed securities it insured.

FGIC, which New York state insurance officials took over after its MBS-related losses mounted, is one of several monoline insurers who have accused Bank of America and its Countrywide units of tricking them into insuring mortgage-backed securities by making their financials appeal much more rosy...
To view the full article, register now.