FDIC Sues Over Mortgage-Backed Securities Sold to Failed Banks

Monday, 21 May 2012 02:59 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The Federal Deposit Insurance Corp. sued a group of banks including JPMorgan Chase & Co., Citigroup Inc., Bank of America Securities and Deutsche Bank AG in two actions over mortgage-backed securities.

The FDIC, acting as receiver for two failed banks, filed the suits in New York federal court today seeking $77 million the banks allegedly lost on securities backed by residential mortgages.

The FDIC filed an $11 million claim as receiver for Strategic Capital Bank, a Champaign, Illinois, commercial bank that was closed by regulators in 2009. It filed a separate $66 million claim on behalf of Strategic Capital and Citizens National Bank.

The defendants misled investors in the registration statements for the securities, according to the FDIC.

The cases are Federal Deposit Insurance Corp. v. Bear Stearns Asset Backed Securities I LLC, 12-cv-4000; Federal Deposit Insurance Corp. v. J.P. Morgan Securities LLC, 12-cv- 4001, U.S. District Court, Southern District of New York (Manhattan).


© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved