Bear Stearns Hid CDO Risk Ahead Of $100M Loss, CIFG Says

Law360, New York (April 4, 2013, 5:27 PM EDT) -- CIFG Assurance North America Inc. fought Tuesday to save its New York lawsuit targeting J.P. Morgan Securities LLC over more than $100 million of losses tied to Bear Stearns & Co. collateralized debt obligations, arguing that its fraud and misrepresentation claims were proper.

The insurer told the court JP Morgan relied on limited disclosures in its motion to dismiss claims that Bear Stearns, which JPMorgan Chase & Co. acquired in 2008, misled CIFG into providing financial guaranty insurance on credit default swaps in two CDOs Bear...
To view the full article, register now.