* Assured, UBS enter in loss-sharing agreement on future
* Assured shares up 4 pct
May 6 Bond insurer Assured Guaranty Ltd
said UBS AG will pay it $358 million to settle a
lawsuit that accused the bank of falsely representing the
quality of the loans underlying $1.49 billion of mortgage-backed
Assured shares were up 3 percent at $21.47 in early trading
on Monday on the New York Stock Exchange.
UBS and Assured have also entered into loss-sharing
agreement on future claims, which will take effect from the
"UBS represents the third financial institution with which
we have reached a major settlement since 2011," Assured Chief
Executive Dominic Frederico in a statement.
Assured sued UBS in February 2012 after the bank declined to
repurchase hundreds of millions of dollars worth of mortgages.
The lawsuit, which claimed breach of contract, focused on
financial guaranty insurance Assured provided in 2006 and 2007
to three mortgage-backed securities transactions.
In its complaint, Assured said it had paid out $308.2
million in claims related to the securities by the end of
"The financial effect of the settlement on UBS is
insignificant due to provisions that we had previously
established," UBS said in a statement on Monday.
Assured has filed similar lawsuits against units of JPMorgan
Chase & Co, Credit Suisse and Flagstar Bancorp
Inc. It had earlier reached settlements with Bank of
America for $1.1 billion and Deutsche Bank
for $165.6 million, without filing lawsuits against them.
The case is Assured Guaranty Municipal Corp. V. UBS Real
Estate Securities, Inc., U.S. District Court, Southern District
of New York, No. 12-01579.