MBIA, RBC Drop Subprime CDS, Restructuring Suits

Law360, New York (January 7, 2011, 2:44 PM EST) -- MBIA Inc. and the Royal Bank of Canada have laid down their swords in two lawsuits over RBC's sale of credit default swaps to MBIA and MBIA's 2009 restructuring.

The two companies signed a stipulation of voluntary discontinuance of MBIA's suit alleging RBC defrauded it into buying CDS to protect against subprime mortgage-related losses in the Supreme Court of the State of New York for Westchester County on Tuesday.

The agreement comes immediately on the heels of RBC's decision to drop its claims in litigation in...
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