DZ Bank Hits Goldman Sachs With $189M RMBS Fraud Suit

Law360, New York (September 7, 2012, 7:58 PM EDT) -- Deutsche Zentral-Genossenschaftsbank AG on Friday sued several Goldman Sachs Group Inc. units in New York state court, alleging fraudulent misrepresentation of $189 million in risky residential mortgage-backed securities, becoming the third German bank to accuse Goldman of RMBS improprieties this week.

Deutsche Zentral-Genossenschaftsbank, also known as DZ Bank, had purchased $188.6 million in RMBS from the Goldman units without knowing they had made fraudulent misrepresentations and omissions about the underwriting standards used to issue the mortgages underlying the securities, according to a summons filed by DZ...
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