FDIC Beats Back MBIA's Suit Over IndyMac Collapse

Law360, New York (October 6, 2011, 11:28 PM EDT) -- A federal judge on Thursday dismissed MBIA Insurance Corp.'s suit against the Federal Deposit Insurance Corp., ruling that the insurer's claims of losses in the collapse of IndyMac Bank FSB cannot be deemed recoverable administrative expenses.

U.S. District Judge Amy B. Jackson of the District of Columbia rejected MBIA's argument that the FDIC tacitly approved a set of mortgage-backed securities transaction agreements between MBIA and IndyMac because the FDIC did not specifically reject them when it assumed the role of receiver of the failed bank....
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