Wells Fargo Sues AHM, Bear To Fend Off Threats

Law360, New York (October 26, 2007, 12:00 AM EDT) -- American Home Mortgage Holdings Inc., joined by Bear Stearns Cos., has been sued in the nature of interpleader by its securities administrator Wells Fargo & Co., which wants the bankruptcy court to weigh in on which party it owes $1.8 million in mortgage-backed notes.

Wells Fargo's adversary complaint, filed in the Delaware district court where American Home's Chapter 11 case is playing out, involves mortgage-backed notes that American Home's securities arm allegedly sold Bear Stearns under a repurchase deal that met Bankruptcy Code safe harbor provisions,...
To view the full article, register now.