Barclays Shakes Off €400M CDO Fraud Suit In UK

Law360, New York (March 9, 2011, 4:50 PM EST) -- A U.K. judge on Wednesday tossed a San Marino bank's suit alleging Barclays PLC misrepresented the value of €406 million ($565 million) in collateralized debt obligations that tanked when the financial crisis hit.

Judge Nicholas Hamblen of the Commercial Court of the High Court of Justice in London ruled that Cassa di Risparmio della Repubblica di San Marino SpA's claims failed “on various grounds."

CRSM argued that CDOs it bought from Barclays were assigned a credit rating of AAA, indicating a five-year default risk close to...
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