FGIC Fires Back At Freddie Mac Over ResCap Bankruptcy Deal

Law360, Los Angeles (August 02, 2013, 9:37 PM ET) -- Financial Guaranty Insurance Co. on Friday blasted Freddie Mac's call for a New York bankruptcy judge to reject Residential Capital LLC's recent deal with FGIC to slash the bond insurer's claim by nearly $5 billion, claiming that objections by investors were misguided and self-serving.

The government-sponsored enterprise said Monday that the settlement, which would reduce the claim from $5.5 billion to $596.5 million, would terminate insurance policies guaranteeing the payment of principal and interest on mortgage-backed securities it holds that were issued or serviced by ResCap....
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