Credit Suisse Ruling Arms Banks In Battle Over MBS Policies

Law360, New York (October 16, 2012, 9:58 PM EDT) -- In barring Assured Guaranty Municipal Corp. from recovering rescissory damages in its mortgage-backed securities suit against Credit Suisse AG on Thursday, a New York judge handed lenders a powerful tool in their high-stakes fight to block financial guaranty insurers from rescinding similar policies, experts say.

One of several insurance giants to resist covering MBS losses, Assured accused Credit Suisse units DLJ Mortgage Capital Inc. and Credit Suisse Securities (USA) LLC of representing the loans underlying $1.8 billion in residential mortgage-backed securities as being of higher quality...
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