BofA, JPMorgan, Others Sued Over $4.5B In MBS

Law360, New York (September 30, 2011, 2:50 PM EDT) -- A trio of foreign investment funds on Thursday sued Bank of America Corp., JPMorgan Chase & Co. and others over $4.5 billion in mortgage-backed securities, the latest allegations related to underwriting standards during the subprime lending boom.

Irish entity Sealink Funding Ltd., Stuttgart, Germany-based Landesbank Baden-Wurttemberg and the Cayman Islands branch of Caledonian Trust Ltd. accused the banks of repackaging dozens of risky loans issued by now-defunct lenders as safe investments, according to court documents.

Most of the bonds, once rated AAA, now carry C or...
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