CIFG Wants Fraud Claims Restored In $275M Goldman Suit

Law360, New York (January 10, 2013, 7:37 PM EST) -- Goldman Sachs Group Inc. committed fraud by lying to CIFG Assurance North America Inc. when it said the loans underlying mortgage-backed securities CIFG insured were high-quality, the bond insurer's attorney told a New York state appeals court Thursday.

Goldman Sachs made representations and warranties to CIFG, now in runoff, that the more than 6,200 second-lien subprime residential mortgages in the securities were as good as the bank said they were, CIFG attorney Michael S. Vogel of Allegaert Berger & Vogel LLP said during a hearing to...
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