The Federal Home Loan Bank of Boston sued several entities in the securitization chain this week, seeking relief for $5.8 billion in soured private-label mortgage-backed securities. The bank filed the lawsuit in the Superior Court Department Business Litigation Session of the Commonwealth of Massachusetts. It named securities dealers, underwriters, control persons, issuers, depositors, and credit-rating agencies. The MBS were issued by 115 securitization trusts. FHLB Boston alleged it was given untrue or misleading statements in the sale of the securities. Securities documents allegedly contained misrepresentations, omissions and unfair or deceptive trade practices. The bank also claimed fraud on the part of the ratings agencies. “The Bank is seeking various forms of relief including rescission, recovery of damages, recovery of purchase consideration plus interest (less income received to date) and recovery of reasonable attorneys’ fees and costs of suit,” the FHLB of Boston said. The lawsuit names several Wall Street investment firms, and the traders who arranged the deals by name, as defendants. Several foreign banks and their fixed-income employees are also named in the filings. Former employees of Lehman Brothers are also named. Write to Jon Prior. Follow him on Twitter @JonAPrior.
FHLB Boston sues over $5.8 billion in MBS
Most Popular Articles
Latest Articles
Real estate farming: Become the go-to agent in your area using these tips, tools & strategies
Learn how to generate a steady pipeline of real estate leads and clients in your area using this proven approach.
-
Zillow believes the evolution of the industry will only help it grow
-
All parties have settled the Sitzer/Burnett suit, so what’s next?
-
Longtime reverse mortgage leader Scott Norman appointed CEO of Texas MBA
-
Rates at 7% attract different types of borrowers, forcing lenders to rethink profit strategies
-
The unchanging