Wells Fargo Sues Babcock & Brown Over $198M Loan Default

Law360, New York (February 23, 2012, 6:57 PM EST) -- Wells Fargo Bank NA sued defunct investment firm Babcock & Brown LP and related funds Thursday, saying a $198 million mortgage loan backed by 17 apartment complexes went into default after the companies failed to make a payment on Feb. 10.

The fund Alliance PP2 FX2 Limited Partnership borrowed more than $198 million from Column Financial Inc. in 2006. The loan was guaranteed by Babcock & Brown and Alliance Holdings Investments LLC and assigned to Wells Fargo as trustee for the holders of securities tied to...
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