Bond Insurer Left Holding The Bag On $312M+ In Crappy Home Loan-Backed Mortgage Securities Sues Deutsche Affiliates To Force Buy-Back

Bloomberg News reports:

• A unit of Assured Guaranty Ltd. sued affiliates of Deutsche Bank AG over $312 million of mortgage-backed securities that the bond insurer guaranteed and says were “plagued by rampant fraud and misrepresentations.”

• Assured Guaranty Corp. is asking a judge to force the bank to repurchase the loans, on which the insurer has already paid almost $60 million in loss claims and sees the potential for tens of millions of dollars more, according to a complaint filed today in New York state Supreme Court against DB Structured Products Inc. and ACE Securities Corp. The bond insurer, backed by billionaire Wilbur Ross, is also seeking reimbursement for the claims paid and for future losses.

For more, see Assured Guaranty Sues Deutsche Bank Over Mortgages.

For the lawsuit, see Assured Guaranty Corp. v. DB Structured Products Inc., et ano. (Index #651824/2010, NY Supreme Court - New York County (Manhattan); go here for related court docket).

Thanks to Mike Dillon at GetDShirtz.com for the heads-up on the story.