Thornburg Mortgage Sues Citi, Chase, Others For $2.1B

Law360, New York (May 2, 2011, 5:10 PM EDT) -- The trustee for bankrupt real estate investment trust TMST Inc. fired off lawsuits at Citigroup Inc. and five other banks in Maryland late last week, seeking the return of $2.1 billion in margin calls and other improper agreements that brought the mortgage lender to its knees.

The largest of the trustee's suits, filed Saturday, alleges that JPMorgan Chase Funding Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Royal Bank of Scotland PLC, UBS AG and others "used market disruption as a justification to initiate...
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