| NEW YORK
NEW YORK Feb 5 Flagstar Bancorp Inc was
ordered on Tuesday to pay $90.1 million to bond insurer Assured
Guaranty Ltd in a contract dispute over loans underlying
$900 million in mortgage-backed securities.
The ruling was issued by U.S. District Judge Jed Rakoff in
Manhattan following a bench trial last year.
Assured had sued Flagstar over guarantees it provided for
the securities, which turned sour as the housing market
The closely watched lawsuit has been seen as a test of the
ability of bond insurers to hold banks accountable for losses
incurred insuring securities at the heart of the financial