Insurer Hits Credit Suisse With $250M MBS Fraud Suit

Law360, New York (April 3, 2013, 3:24 PM EDT) -- Financial Guaranty Insurance Co. on Tuesday slapped Credit Suisse Securities LLC and an affiliate with a fraud suit in New York state court over $250 million in mortgage-backed securities it agreed to insure, alleging that the financial services giant misrepresented the quality of the loans.

Credit Suisse tricked the insurer into issuing a policy in 2006 guaranteeing payments on the securities by promising that the loans were issued to borrowers with a low risk of default, but the company actually securitized loans it knew were defective...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.