BayernLB Targets Merrill Lynch Over $324M In Toxic RMBS

Law360, New York (May 4, 2012, 1:27 PM EDT) -- German bank Bayerische Landesbank on Wednesday filed the latest in a series of suits it has brought in New York state court over alleged fraud in the sale of toxic residential mortgage-backed securities, this time targeting Merrill Lynch & Co. Inc. over $324 million in RMBS BayernLB purchased.

The bank says Merrill Lynch, whose job was to ensure the quality of the underlying loans, knowingly made misrepresentations in the offering materials for the securities, claiming the mortgage loans had been issued in accordance with high underwriting...
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