Allstate Hits Citi, Deutsche Bank With MBS Suits

Law360, New York (February 18, 2011, 6:55 PM EST) -- Allstate Insurance Co. accused Citigroup Inc. and Deutsche Bank AG-affiliated entities Friday of misrepresenting the risks of $385 million in mortgage-backed securities, on the heels of a similar suit against JPMorgan Chase Bank NA.

Allstate wants the two banks to cover its losses, the company said in separate complaints in the Supreme Court of the State of New York, County of New York. The insurer bought over $200 million in mortgage-backed securities from Citigroup and over $185 million from Deutsche Bank, based on allegedly false promises...
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