Assured Guaranty pursues $5.4b ‘faulty’ loans buyback
Created: May 11, 2011 01:00 AM (Updated: May 11, 2011 02:53 PM)
Assured Guaranty CEO Dominic Frederico
NEW YORK (Bloomberg) Bermuda-based bond insurer Assured Guaranty Ltd, which reached a $1.6 billion settlement with Bank of America Corp last month on soured mortgages it guaranteed, said it’s still seeking buybacks of $5.4 billion of loans from other lenders it claims breached representations and warranties.Assured is seeking recoveries from Deutsche Bank AG, Credit Suisse Group AG, JPMorgan Chase & Co and Flagstar Bancorp Inc, the company’s chief executive officer Dominic Frederico, said on a conference call with investors yesterday.The loans included misrepresentations of income, employment or occupancy, undisclosed debt by the borrowers or failed to comply with other underwriting guidelines, Frederico said on the call.