FDIC Seeks $77M From Big Banks In 2 RMBS Suits

Law360, New York (May 21, 2012, 7:25 PM EDT) -- The Federal Deposit Insurance Corp., acting as receiver for two failed banks, launched two suits in New York federal court on Friday that seek a combined $77 million from several banking giants over the sale of residential mortgage-backed securities.

The FDIC claims that the defendants — which include units of Bank of America Corp., JPMorgan Chase & Co. and Citigroup Inc. — made several misrepresentations and omissions regarding the underwriting and issuance of $104 million worth of mortgage-backed securities bought by Strategic Capital Bank and $67.5...
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