Allstate Fights To Return $1B MBS Row To State Court

Law360, New York (April 19, 2011, 1:27 PM EDT) -- Allstate Insurance Co. asked a New York federal court Monday to return to state court its suits accusing Citigroup Inc., JPMorgan Chase Bank NA and Deutsche Bank AG of downplaying the risks of more than $1 billion in mortgage-backed securities.

Allstate, which wants the banks to cover its losses, said the separate suits all belong in the New York state court where they were first filed in February. The insurer bought $750 million in mortgage-back securities from Chase, another $200 million from Citigroup and more than...
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