SC Sues BNY Over $200M In Subprime, Lehman Losses

Law360, New York (January 27, 2011, 2:29 PM EST) -- South Carolina has sued Bank of New York Mellon Corp. over the loss of as much as $200 million stemming from purchases of Lehman Brothers Holdings Inc. debt and subprime mortgage-backed securities under an asset lending contract.

The state's treasurer Curtis Loftis filed a complaint in the County of Richland Court of Common Pleas on Wednesday contending that the bank failed to adhere to investment guidelines under the agreement.

"Our contract called for investments limited to conservative, high quality instruments," said the treasurer in a statement....
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.