Deutsche Bank Sues GE Unit Over $650M Losses In MBS Pool

Law360, New York (June 25, 2012, 9:54 PM EDT) -- A Deutsche Bank AG unit on Monday hit General Electric Co.'s former loan-originating operation with a lawsuit for selling a pool of $2.6 billion in securitized mortgage loans in 2006 through allegedly false warranties that supposedly led to $650 million in losses.

In a complaint filed in Connecticut federal court, Deutsche Bank National Trust Co., acting as trustee for Morgan Stanley ABS Capital I Inc., claimed that WMC Mortgage LLC, the successor to GE’s former loan origination business WMC Mortgage Corp., had breached its representations about...
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