6th Circ. Clears Wall St. Of Cleveland Subprime Suit

Law360, New York (July 28, 2010, 8:49 AM EDT) -- The city of Cleveland’s crusade to recover millions of dollars from Wall Street banks for its devastating tide of foreclosures has met solid resistance from a federal appeals court, which agreed with a lower court that subprime lenders like Goldman Sachs Group Inc. and Bank of America NA are not the cause of the scourge.

The U.S. Court of Appeals for the Sixth Circuit dealt Cleveland’s public nuisance suit a resounding blow Tuesday, holding that the city’s housing woes, and the expenses all the foreclosures incurred,...
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