Reuters-

U.S. Senior District Judge Jed Rakoff of Manhattan made Assured Guaranty wait a long time for the opinion explaining his ruling back in February that denied the MBS issuer Flagstar summary judgment on its interpretation of what constitutes a breach of the representations and warranties on mortgages underlying the securities Assured insured. But for Assured and its counsel at Susman Godfrey, the 24-page opinion Rakoff finally issued Tuesday was worth the wait, and then some. Rakoff not only offered a simple definition of a material adverse effect that should help everyone with MBS put-back claims but also wiped out several other potential Flagstar defenses to Assured’s claims. With a bench trial in the case only a couple of weeks away, Flagstar has to be wondering if it’s time to talk settlement.

[REUTERS ON THE CASE]

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