Deutsche Bank Unit’s Suit Over $352M In MBS Gets OK

Law360, New York (July 25, 2011, 7:51 PM EDT) -- A New York judge on Monday allowed a Deutsche Bank AG subsidiary to sue a mortgage originator over $352 million in mortgage-backed securities that allegedly “failed miserably” as part of a larger fight between the bank and one of its insurers.

Justice Shirley Kornreich ruled that DB Structured Products Inc., an MBS issuer, has made sufficient allegations to sue mortgage originator Greenpoint Mortgage Funding Inc., which sold it over 6,000 loans, many of which are allegedly based on fraud.

“Much more than the mere possibility of...
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