Jacob Buchdahl scored a big win on Tuesday, February 5th when U.S. District Judge Jed Rakoff finally issued a long-awaited ruling that may be remembered as a turning point in the MBS wars.
In a 103-page opinion, Rakoff ordered Flagstar to pay Assured $90 million in damages, plus attorney fees–pretty much exactly what Buchdahl and his partner Arun Subramanian had asked for. More importantly, Rakoff drew a precise roadmap to victory for other bond insurers, like MBIA Inc. and AMBAC Assurance Corp, which are seeking billions from the likes of Bank of America Corporation and JPMorgan Chase & Co.
