NY High Court Lets Barclays Off Hook Over $1.6B Toxic MBS

Law360, New York (June 27, 2012, 1:34 PM EDT) -- New York state's highest court refused Wednesday to revive an investment firm's breach of contract suit alleging Barclays Bank PLC dumped nearly $1.6 billion in toxic mortgage-backed securities into two structured investment vehicles that quickly went bust.

The New York Court of Appeals affirmed a lower court's April 2010 dismissal of Oddo Asset Management's suit alleging Barclays knowingly sold doomed securities to the so-called SIV-Lites, called Golden Key and Mainsail, in order to avoid a hit to its balance sheet.

Barclays sold the securities in 2007...
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