Assured Guaranty has sued DLJ Mortgage Capital and Credit Suisse, claiming breach of contract over $1.8 billion of MBS it insured.
Assured Guaranty claims DLJ Mortgage Capital failed to abide by its contractual obligations and that it securitized thousands of residential mortgage loans and induced investors to buy them and insurers to insure them by claiming the loans met specified standards. Assured claims those representations were false and Assured is exposed to hundreds of millions of dollars in current and future claims payments as a result.
Credit Suisse was named as a relevant non-party because it acted as a depositor for the securitizations that are named in the complaint.
A spokeswoman for Assured Guaranty did not immediately provide comment. A spokeswoman for DLJ could not be reached.