Calif. Fund Seeks $100M From Wachovia Over RMBS Deal

Law360, New York (February 27, 2012, 7:57 PM EST) -- The California State Compensation Insurance Fund on Friday asked a federal judge to force Wachovia Bank NA to pay more than $100 million in a breach of contract lawsuit based on the bank’s alleged purchase of residential mortgage-backed securities from an offshore company.

The workers' compensation fund says Wachovia breached a contract that prohibited the bank from buying securities from companies that were not based in the U.S. when it purchased some from a Cayman Islands company in 2007.

The deal ended up costing the state...
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