RBS Fudged Value Of $291M In MBS, Assured Says

Law360, New York (March 27, 2013, 4:59 PM ET) -- Assured Guaranty Municipal Corp. hit financial services company RBS Securities Inc. with a fraud suit Tuesday in New York federal court accusing it of misrepresenting the value of $291 million worth of residential mortgage-backed securities.

The insurance company claims RBS tricked Assured into providing a financial guaranty insurance policy for the certificates, which were part of a $1.2 billion securitization known as the Soundview Home Loan Trusts. Following an original AAA rating, the securities now have been downgraded to junk status and have left Assured with...
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