Ambac angered by $44m mortgage backed security claims
Stricken US insurer Ambac is suing Credit Suisse Securities claiming it provided flawed information on the 2,500 home-equity loans in a $170m mortgage-backed security Ambac insured.
The deal was packaged by Credit Suisse and affiliate DLJ Mortgage Capital in March 2007. More than 30% of the original loan balance went into default and Ambac paid around $44m in claims.
Ambac then examined a sample of the loans and claims that 80% breached the representations made by DLJ and Credit Suisse. Ambac is asking for compensatory and punitive damages and lawyers fees.
Credit Suisse spokesman Bruce Corwin said Tuesday in response: "We believe this lawsuit is without merit and we intend to defend ourselves vigorously."
