Financial Guaranty Insurance Company brings fraud claims against IKB in connection with US$1.875 billion liquidity support transaction
Clients Financial Guaranty Insurance Company
Jones Day represented Financial Guaranty Insurance Company and its U.K. subsidiary ("FGIC") in an action in New York State Supreme Court against IKB and its affiliates (the "Havenrock Action"). FGIC alleged that IKB and its affiliates, through a series of fraudulent misrepresentations and omissions regarding IKB's financial condition and stability, induced FGIC to enter into a commitment agreement to issue financial guaranty covering certain losses arising in a CDO portfolio. That commitment exposed FGIC to massive liabilities. The action received national and international media attention.
Financial Guaranty Insurance Company and FGIC UK Limited v. IKB Deutsche Industriebank AG, et al., Index No. 600704/08 (N.Y. Supr. Ct.)