Bear Stearns Amply Warned Ky. Bank Of MBS Risk: 6th Circ.

Law360, New York (June 20, 2012, 7:33 PM EDT) -- Bear Stearns and Co. Inc. adequately warned Republic Bank and Trust Co. about the risky nature of $52 million worth of investments in subprime mortgage-backed securities, the Sixth Circuit found Wednesday, agreeing with a lower court's decision to toss Republic's lawsuit claiming the now-defunct investment bank was liable for its losses. 

The decision, which upholds a ruling reached by a Kentucky federal court in 2010, said Republic’s admitted failure to read investment prospectuses and other information provided by Bear Stearns shielded the now-defunct investment bank from...
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