Assured Guaranty Applauds Precedent-Setting Decision in Flagstar Suit

  Assured Guaranty Applauds Precedent-Setting Decision in Flagstar Suit

Business Wire

HAMILTON, Bermuda -- February 5, 2013

Following the decision by Judge Jed S. Rakoff of the United States District
Court for the Southern District of New York in Assured Guaranty’s case seeking
recoveries from Flagstar Bank for breaches of representations and warranties
(R&W) in insured residential mortgage-backed securities (RMBS), Assured
Guaranty Ltd. President and CEO Dominic Frederico said:

“Judge Rakoff gave us an important victory, awarding us substantially all the
damages we had sought, including approximately $90 million as compensation for
claims paid, as well as interest, costs and attorneys’ fees still to be
determined. This is the first trial related to RMBS R&W putbacks that has come
to a final court ruling, and it sets a strong precedent in support of the
rights of Assured Guaranty in these cases. The court recognized and clearly
articulated the responsibility of  an R&W provider to honor its contractual
obligations to purchase defective mortgage loans.”

The decision is consistent with preliminary rulings from other courts in legal
actions that have called on RMBS R&W providers to take responsibility for
contractual commitments.

“His decision establishes clear liability as it relates to originators and
securitizers of RMBS transactions and strengthens Assured Guaranty’s resolve
to seek full recovery from R&W providers that refuse to recognize this
liability,” added Mr. Frederico.

Assured Guaranty Ltd. (together with its subsidiaries, Assured Guaranty or the
Company) is a publicly traded Bermuda-based holding company. Its operating
subsidiaries provide credit enhancement products to the U.S. and international
public finance, infrastructure and structured finance markets. More
information on Assured Guaranty and its subsidiaries can be found at
assuredguaranty.com.

Cautionary Statement Regarding Forward-Looking Statements:

Any forward-looking statements made in this press release reflect the
Company's current views with respect to future events and financial
performance and are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such statements involve risks and
uncertainties that may cause actual results to differ materially from those
set forth in these statements. For example, Assured Guaranty's ability to
realize insurance loss recoveries or damages from originators, sellers,
sponsors, underwriters or servicers of RMBS transactions could be affected by
the ability or willingness of these parties to make such payments and other
risk factors identified in Assured Guaranty's filings with the Securities and
Exchange Commission. Readers are cautioned not to place undue reliance on
these forward-looking statements. These forward-looking statements are made as
of February 5, 2013, and Assured Guaranty undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.

Contact:

Assured Guaranty
Robert Tucker, 212-339-0861
Managing Director, Investor Relations and Corporate Communications
rtucker@assuredguaranty.com
or
Media:
Ashweeta Durani, 212-408-6042
Vice President, Corporate Communications
adurani@assuredguaranty.com
 
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