Wells Fargo Files $239M Suit Over MBS Loan Default

Law360, New York (July 21, 2011, 9:35 PM EDT) -- Wells Fargo Bank NA sued several funds associated with defunct investment firm Babcock & Brown LP for $239 million in Texas federal court on Thursday, saying the funds breached the contract on a mortgage-backed loan secured by 14 apartment complexes.

The defendants — three funds associated with Alliance Holding Investments LLC, Alliance Holdings Inc. and Babcock & Brown — took out a $195 million real estate loan from Column Financial Inc. in 2006, using mortgage security interests in apartment complexes located in Nevada, South Carolina, Texas,...
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