FGIC's mortgage loss exposure exceeds legal risk limits

03/27/2008 | Reuters

FGIC Corp. said it may have to raise capital to beef up its loss reserves because of a lawsuit against German bank IKB. The bond insurer also said its exposure to mortgage losses has exceeded the risk limits set by New York state insurance law. While FGIC maintained that the issue is a "technical violation," an insurance analyst called it a "bombshell."

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