MBIA Can't Make FDIC Pay For IndyMac Losses, DC Circ. Rules

Law360, Los Angeles (March 8, 2013, 6:35 PM EST) -- The D.C. Circuit on Friday nixed MBIA Insurance Corp.’s lawsuit alleging that the Federal Deposit Insurance Corp. wrongly refused to reimburse it for losses on mortgage-backed securities contracts it insured for collapsed IndyMac Bank FSB, saying the FDIC didn't actively approve the failed bank's pooling and servicing agreements.

Friday’s decision comes almost four months after MBIA told the D.C. Circuit panel that the FDIC should be held responsible for the insurance company’s losses stemming from the MBS contracts, since the FDIC had tacitly approved the agreements...
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