FDIC Wants MBIA's IndyMac Suit Tossed

Law360, New York (May 24, 2010, 4:00 PM EDT) -- The Federal Deposit Insurance Corp. is allowed to pay itself first when sorting through a bank failure, the agency has said in a motion to dismiss bond insurer MBIA Insurance Corp.'s suit against it over the failure of IndyMac Bank.

When acting as a receiver the FDIC can legally disburse money as it sees fit without liability if it later turns out it has paid one claimant — including itself — too much, the agency said in a motion filed Friday in the U.S. District Court...
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