Morgan Stanley, UBS and Barclays were among banks sued by Federal Home Loan Bank of Seattle, which seeks to recoup more than $2 billion it paid for certificates backed by faulty mortgages. The banks made misleading statements about the asset-backed securities and the credit quality of the mortgage loans that backed them when they sold them to Federal Home Loan, according to six complaints filed in state court in Seattle last month and transferred to federal court starting Jan. 22. The Seattle bank, one of 12 Federal Home Loan Banks in the US, wants to recover at least a portion of the purchase price, plus interest, of certificates purchased since 2005.
Federal Home Loan sues banks for $2B
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