Assured's MBS Win May Force Wave Of Bank Settlements

Law360, New York (February 7, 2013, 7:51 PM EST) -- Assured Guaranty Corp.’s $90.1 million victory over a Michigan bank it accused of misrepresenting the quality of roughly $900 million in residential mortgage-backed securities covered by Assured could open the floodgates for similar litigation and leave global banks facing comparable suits far more inclined to settle, experts said Thursday.

After a 12-day bench trial in October, U.S. District Judge Jed S. Rakoff on Tuesday awarded Assured $90.1 million in damages in New York federal court, finding Flint, Mich.-based Flagstar Bank FSB had breached its contracts by...
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