ResCap Gets Green Light For $597M Settlement With FGIC

Law360, New York (September 13, 2013, 8:28 PM ET) -- A New York bankruptcy judge on Friday approved a settlement between Residential Capital LLC and Financial Guaranty Insurance Co. that slashes the bond insurer’s multibillion-dollar claims against bankrupt ResCap to $596.5 million.

The settlement is “fair, equitable and in the best interests of the debtors and their estates,” U.S. Bankruptcy Judge Martin Glenn said in a written order.

The deal is part of a global settlement between Rescap, once one of the largest mortgage servicing companies in the U.S., and parent company Ally Financial Inc., which...
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