Deutsche Bank Accuses GE Units Of $390M MBS Loan Fraud

Law360, New York (December 3, 2012, 1:54 PM EST) -- A Deutsche Bank AG unit on Friday sued two General Electric Co. lending units in Connecticut federal court, claiming they misrepresented more than $390 million in loans underlying a mortgage-backed security trust and have refused to meet a contractual obligation to repurchase the loans.

According to Deutsche Bank National Trust Co., WMC Mortgage Corp., the predecessor to GE-owned subprime lending unit WMC Mortgage LLC, sold nearly $1 billion of loans — just under 4,800 — to Securitized Asset-Backed Receivables LLC during December 2006, which in turn...
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