Trustee Wants Ex-GE, Barclays Units To Buy Back Loans

Law360, New York (September 6, 2011, 6:45 PM EDT) -- A U.S. Bancorp unit serving as a trustee for a $550 million mortgage pool sued General Electric Co.'s and Barclays PLC's former loan originating operations Friday in Minnesota federal court to get them to buy back "defective" loans that were grouped and sold to investors.

The defunct originators — GE's WMC Mortgage Corp. and Barclays' EquiFirst Corp. — are obligated under the terms of an agreement to buy back the trust's mortgage loans because of misrepresentations made when the loans were first sold to be securitized,...
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