DZ Bank Targets BofA, Ally Over $290M In MBS

Law360, New York (December 15, 2011, 11:49 AM EST) -- Ally Financial Inc. and Bank of America Corp. were sued Tuesday by German lender DZ Bank AG over $290 million in home mortgage-backed securities.

The sale documents for the securities misrepresented the underwriting standards used to issue the loans in the portfolio, said the Frankfurt, Germany-based bank's suit, filed in New York state court. Other defendants include RBS Securities Inc., GMAC Residential Funding Corp. and Financial Guaranty Insurance Co.

"Defendants were actively involved in each step of securitization and sale of the securities," DZ Bank said....
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