European Banks Take On Morgan Stanley Over $1.2B In RMBS

Law360, New York (January 26, 2012, 8:18 PM EST) -- German bank Bayerische Landesbank and Belgian bank Dexia SA hit Morgan Stanley with separate lawsuits in New York on Wednesday accusing the financial services giant of fraud in the creation and sale of nearly $1.2 billion in residential mortgage-backed securities.

Morgan Stanley knew about the poor quality of the loans that it securitized but misled BayernLB, Dexia and other investors into thinking they were safe investments, the banks contend in their lawsuits.

“This misconduct has resulted in astounding rates of default on the loans underlying the...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.