ResCap's $597M FGIC Deal Scores NY State Judge's Blessing

Law360, New York (August 19, 2013, 3:52 PM ET) -- Bankrupt Residential Capital LLC moved one step closer Friday to cementing a deal with Financial Guaranty Insurance Co. to slash the bond insurer's multibillion-dollar claims to $596.5 million after a New York state judge overseeing the insurer's rehabilitation signed off on it.

Judge Doris Ling-Cohan said that FGIC can enter the deal with the bankrupt mortgage servicer and found that the state insurance regulator overseeing the bond insurer's rehabilitation had acted reasonably in inking the deal, overruling the objections of Freddie Mac and investors who hold...
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