Preferred Bank Sues Insurer Over $11M Fraud Coverage

Law360, New York (April 28, 2011, 6:30 PM EDT) -- Texas' Preferred Bank sued Travelers Cos. subsidiary St. Paul Mercury Insurance Co. on Wednesday for allegedly failing to cover an $11 million mortgage fraud against the bank.

Preferred Bancshares Inc., the holding company for Preferred Bank, wants St. Paul to pay for losses it incurred buying mortgages that a New Jersey company originated, then sold twice — once to Preferred and once to another bank.

Preferred says a so-called financial institution bond it has with St. Paul covers losses that stem from fraudulent documents, like those...
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.