Insurer Accuses BofA Of Fraud Over RMBS-Related Policies

Law360, New York (November 21, 2012, 6:03 PM EST) -- CIFG Assurance North America Inc. on Tuesday hit Bank of America Corp. with a fraud and breach of contract suit over policies the insurer issued in relation to certain residential mortgage-backed securities, arguing BofA conned CIFG into backing extremely risky transactions.

The insurer brought the suit in New York Supreme Court in New York County over five financial guaranty insurance policies it issued in connection with two structured transactions arranged by BofA, which in turn were backed by 22 RMBS.

CIFG maintains that BofA was in...
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