Assured Guaranty to Receive $105 Million Cash Payment and Full Reimbursement
of Future RMBS Claims in Settlement with Flagstar Bank
HAMILTON, Bermuda -- June 21, 2013
Assured Guaranty Ltd. (NYSE:AGO) (AGL and, together with its subsidiaries,
Assured Guaranty or the Company) announced today that Assured Guaranty and
Flagstar Bank have entered into a Settlement Agreement concerning Assured
Guaranty’s litigation against Flagstar Bank for breaches of representations
and warranties (R&W) in insured residential mortgage-backed securities (RMBS).
The agreement follows the February 5, 2013 decision by Judge Rakoff of the
United States District Court for the Southern District of New York in favor of
As part of the settlement, Assured Guaranty will receive a cash payment of
$105 million. Flagstar will also reimburse Assured Guaranty in full for all
future claims on the Assured Guaranty insurance policies. Additionally,
Flagstar will not appeal Judge Rakoff’s decision.
The comprehensive settlement resolves all RMBS claims that the Company has
asserted against Flagstar and releases both parties from any and all other
future RMBS-related claims between the parties.
Assured Guaranty Ltd. 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
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 June 21, 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.
Assured Guaranty Ltd.
Robert Tucker, 212-339-0861
Managing Director, Investor Relations and Corporate Communications
Ashweeta Durani, 212-408-6042
Vice President, Corporate Communications
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