Assured Guaranty and UBS Reach Settlement Agreement
Assured Guaranty and UBS have reached an agreement concerning multiple outstanding claims relating to residential mortgage-backed securities (RMBS) underwritten or sponsored by UBS and insured by Assured Guaranty, Assured announced today.
The agreement with UBS is the third such dispute settled by Assured involving RMBSes since 2011, according to the press release. The terms of the arrangement include an initial payment from UBS to Assured of $358 million. Additionally, UBS will reimburse Assured Guaranty for "a portion of all future losses on certain transactions under a collateralized loss-sharing reinsurance agreement to be put in place by the third quarter of 2013."
Assured Guaranty CEO Dominic Frederico was quoted as saying, "We have now reached favorable settlements or been awarded compensation in court with respect to approximately 55% of the par outstanding of Assured Guaranty's troubled legacy RMBS."
The article Assured Guaranty and UBS Reach Settlement Agreement originally appeared on Fool.com.Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.