FDIC To Pay $90M To Settle Subprime Mortgage Suit

Law360, New York (January 16, 2009, 12:00 AM EST) -- The U.S. Federal Deposit Insurance Corp. has reportedly agreed to pay $90 million to resolve a lawsuit filed by Beal Bank SSB alleging numerous contract breaches in regard to three subprime mortgage portfolios Beal bought in 2001 and 2002.

The parties had agreed to the $90 million settlement in December, the Wall Street Journal reported Thursday. The parties also signed off on a stipulation of dismissal in the case in December, but the stipulation didn't include any terms of the agreement.

Beal initially filed the case...
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