FDIC Liable For MBIA's IndyMac MBS Losses, DC Circ. Told

Law360, Washington (November 14, 2012, 2:26 PM EST) -- MBIA Insurance Corp. told a D.C. Circuit panel on Wednesday that the Federal Deposit Insurance Corp. should be held responsible for the insurance company's losses stemming from mortgage-backed securities contracts with collapsed IndyMac Bank FSB, since it tacitly approved the agreements in its role as the bank's receiver. 

According to MBIA, the FDIC had the opportunity to reject the mortgage-backed securities deals that are a part of the suit after it became IndyMac's receiver in July 2008. Instead, the regulator allegedly reaped the benefits of the...
To view the full article, register now.