Assured Guaranty to receive $105M in settlement with Flagstar Bancorp

theflyonthewall.com

Assured Guaranty Ltd. (AGO) announced that Assured Guaranty and Flagstar Bank (FBC) have entered into a Settlement Agreement concerning Assured Guaranty's litigation against Flagstar Bank for breaches of representations and warranties in insured residential mortgage-backed securities . The agreement follows the February 5 decision by Judge Rakoff of the United States District Court for the Southern District of New York in favor of Assured Guaranty. As part of the settlement, Assured Guaranty will receive a cash payment of $105M. Flagstar will also reimburse Assured Guaranty in full for all future claims on the Assured Guaranty insurance policies. Additionally, Flagstar will not appeal Judge Rakoff's decision. The comprehensive settlement resolves all RMBS claims that the company has asserted against Flagstar and releases both parties from any and all other future RMBS-related claims between the parties.

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