Reuters-

Lawyers delivered closing arguments in a closely watched U.S. case brought by Assured Guaranty Ltd (AGO.N) against Flagstar Bancorp Inc (FBC.N) over claims the quality of loans underlying $900 million in mortgage-backed securities were misrepresented.

More than three-fourths of 800 loans the bond insurer examined failed to comply with Flagstar’s underwriting guidelines, Assured counsel Jacob Buchdahl told the judge during closing arguments in a federal court in Manhattan on Monday.

Assured is seeking $116 million in damages.

[REUTERS]