Credit Suisse Says Insurer Spoke Up Too Late On $250M MBS

Law360, New York (February 26, 2014, 8:40 PM EST) -- A unit of Credit Suisse Group AG on Wednesday urged a New York judge to throw out Financial Guaranty Insurance Co.’s fraud suit over $250 million in mortgage-backed securities it had agreed to insure, saying the insurer hadn't made timely demands to repurchase defective loans.

While FGIC argues that a provision in the insurance agreement eliminates the statute of limitations for demanding repurchase of mortgage loans involving fraud, Credit Suisse attorney Barry Levin of Orrick Herrington & Sutcliffe LLP disputed the legality of that provision and...
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