|[February 05, 2013]
Assured Guaranty Applauds Precedent-Setting Decision in Flagstar Suit
HAMILTON, Bermuda --(Business Wire)--
Following the decision by Judge Jed S. Rakoff of the United States
District Court for the Southern District of New York in Assured
Guaranty's case seeking recoveries from Flagstar Bank for breaches of
representations and warranties (R&W) in insured residential
mortgage-backed securities (RMBS), Assured Guaranty Ltd. President and
CEO Dominic Frederico said:
"Judge Rakoff gave us an important victory, awarding us substantially
all the damages we had sought, including approximately $90 million as
compensation for claims paid, as well as interest, costs and attorneys'
fees still to be determined. This is the first trial related to RMBS R&W
putbacks that has come to a final court ruling, and it sets a strong
precedent in support of the rights of Assured Guaranty in these cases.
The court recognized and clearly articulated the responsibility of an
R&W provider to honor its contractual obligations to purchase defective
The decision is consistent with preliminary rulings from other courts in
legal actions that have called on RMBS R&W providrs to take
responsibility for contractual commitments.
"His decision establishes clear liability as it relates to originators
and securitizers of RMBS transactions and strengthens Assured Guaranty's
resolve to seek full recovery from R&W providers that refuse to
recognize this liability," added Mr. Frederico.
Assured Guaranty Ltd. (together with its subsidiaries, Assured Guaranty
or the Company) is a publicly traded Bermuda-based holding company. Its
operating subsidiaries provide credit enhancement products to the U.S.
and international public finance, infrastructure and structured finance
markets. More information on Assured Guaranty and its subsidiaries can
be found at assuredguaranty.com.
Cautionary Statement Regarding Forward-Looking Statements:
Any forward-looking statements made in this press release reflect the
Company's current views with respect to future events and financial
performance and are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Such statements
involve risks and uncertainties that may cause actual results to differ
materially from those set forth in these statements. For example,
Assured Guaranty's ability to realize insurance loss recoveries or
damages from originators, sellers, sponsors, underwriters or servicers
of RMBS transactions could be affected by the ability or willingness of
these parties to make such payments and other risk factors identified in
Assured Guaranty's filings with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these
forward-looking statements. These forward-looking statements are made as
of February 5, 2013, and Assured Guaranty undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
[ Back To Insurance Technology's Homepage ]