The impact of widespread residential mortgage-backed securities purchases continues to be felt across the world as litigants based in foreign countries pile onto the growing pool of RMBS litigation.
The latest plaintiff, Royal Park Investments, is a special purpose vehicle set up by Fortis Holdings and the Belgian government (which is acting through BNP Paribas) to acquire the structured credit portfolios of Fortis Bank.
Royal Park released a statement, saying it has filed a $3 billion suit against JPMorgan Chase (JPM), Deutsche Bank (DB), Goldman Sachs (GS), Credit Suisse (CS), Royal Bank of Scotland (RBS), Merrill Lynch, Morgan Stanley, Bank of America (BAC), Barclays (BCS), Citigroup (C)and UBS (UBS). RPI is suing on behalf of Fortis Bank entities.
In the suit, the entity accuses the investment banks of misrepresenting the underwriting guidelines associated with the home loans backing RMBS transactions. RPI also claims discrepancies in loan-to-value ratios and on representations made about occupancy status.