Citi Unit, Others Want $2B Thornburg Trustee Suit Axed

Law360, New York (September 21, 2011, 7:43 PM EDT) -- Units of Citigroup Inc., JPMorgan Chase & Co. and other banks asked a Maryland bankruptcy judge Tuesday to dismiss a $2.1 billion adversary suit accusing the financial giants of making unfair margin calls and other agreements that brought Thornburg Mortgage Inc. to its knees.

The suit, filed by Chapter 11 trustee Joel I. Sher, alleges that after the group of banks made "a host of unjustified margin calls" in 2008, the parties negotiated agreements that the banks touted as a reprieve from the allegedly aggressive margin...
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