IKB Deutsche Industriebank faced fresh allegations from FGIC. The bond insurer filed a suit against the German bank through a New York City court at the beginning of March.
According to market reports, FGIC sued to get out of a CDO commitment to Calyon on assets IKB had removed from its Rhineland Funding conduit. FGIC alleges misrepresentation, fraud, and a failure to perform certain responsibilities under the CDS and claims it has been exposed to damages of up to $1.875 billion as a result of these obligations. HSH Nordbank filed a similar suit earlier this year, claiming that it had also been mislead by the bank.