In a key decision that will likely boost similar claims by bond insurers against banks, Judge Crotty ruled that bond insurer Syncora could force EMC, a former Bear Stearns business unit now owned by JP Morgan, to buy back home equity loans that were pooled together and used as collateral for notes sold to investors, when those loans did not meet the standards warranted, even without a showing that the breaches caused the loans to default:
Continue Reading Judge Crotty Rules Bond Insurer Need Not Show Actual Losses to Force Bank to Repurchase of Loans That Were Not As Warranted