Calif. Fund Seeks $100M From Wachovia Over RMBS Deal

Law360, New York (February 27, 2012, 7:57 PM EST) -- The California State Compensation Insurance Fund on Friday asked a federal judge to force Wachovia Bank NA to pay more than $100 million in a breach of contract lawsuit based on the bank’s alleged purchase of residential mortgage-backed securities from an offshore company.

The workers' compensation fund says Wachovia breached a contract that prohibited the bank from buying securities from companies that were not based in the U.S. when it purchased some from a Cayman Islands company in 2007.

The deal ended up costing the state...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.