Bond insurer CIFG Assurance NA sued Goldman, Sachs & Co. and M&T Bank Tuesday for fraud and breach of contract involving its commitment to guarantee $275 million of mortgage-backed securities.

The suit, filed in the New York Supreme Court, is the latest example of bond insurers suing banks over soured mortgage securities to recoup devastating losses suffered when the housing market crashed.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.