MassMutual Sues Goldman, Others Over Bad MBS

Law360, New York (May 5, 2011, 9:45 PM EDT) -- Massachusetts Mutual Life Insurance Co. sued Goldman Sachs & Co. and other banks Thursday in Massachusetts for not disclosing that more than $175 million mortgage-backed securities they sold were backed by troubled loans.

The banks — Goldman, Barclays Capital Inc., UBS Securities LLC and Bear Stearns & Co., now owned by J.P Morgan Securities LLC — should have known and disclosed that the securities they underwrote and sold to the insurer were backed by shoddy loans, MassMutual alleges in its complaint. The suit is nearly a...
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