AGM Claims Cut In $82M Flagstar MBS Coverage Fight

Law360, New York (July 11, 2011, 1:47 PM ET) -- A New York federal judge on Thursday slashed reimbursement and indemnification claims from Assured Guaranty Municipal Corp.’s suit alleging Flagstar Bank FSB misrepresented the quality of some $900 million in mortgage-backed securities insured by AGM.

U.S. District Judge Jed Rakoff cut two claims for reimbursement and indemnification from a four-count complaint against Flagstar and its subsidiaries, partially granting and partially denying Flagstar’s motion to dismiss the case.

AGM is accusing Flagstar of lying about the origination and underwriting of thousands of defective home equity loans grouped...
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