German Bank Slams Barclays With $133M MBS Suit

Law360, Wilmington (May 16, 2012, 8:37 PM EDT) -- DZ Bank AG hit Barclays Bank PLC and several affiliates on Tuesday with a suit in New York state court alleging the defendants offloaded $133 million of risky mortgage-backed securities on the German bank through deception.

Frankfurt-based DZ Bank claims the offering materials for the securities were riddled with material misrepresentations and omissions about the underlying loans and the trusts that housed them, according to a summons and notice regarding the suit.

The documentation was less than forthright about the underwriting standards used to issue the...
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