Credit Suisse has withheld many key documents from MBIA in a lawsuit accusing the bank of lying about how it processed loans used in mortgage-backed securities, and it should be ordered to review whether it has more evidence suggesting misconduct, the bond insurer said.
Reuters reports that in a filing in New York state court on Monday, MBIA objected to what it called Credit Suisse's failure to turn over 'some of the hottest documents' in the 4-1/2-year-old lawsuit, on the ground that they were 'non-responsive'.
MBIA, based in Armonk, New York, said it learned of the documents only in the last few months, after a court told Credit Suisse to turn over deposition transcripts from other U.S. cases involving similar claims.
The dispute stemmed from a December 2009 lawsuit in which MBIA accused Credit Suisse of fraudulently deceiving it into participating in a mortgage-backed securities transaction that quickly soured, causing the insurer to pay more than $296m in claims.
Credit Suisse has said the lawsuit lacks merit.
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