BayernLB Can't Sue Over Failed $2B CDO, Barclays Argues

Law360, New York (August 15, 2012, 3:55 PM EDT) -- Barclays Bank PLC asked a New York federal judge on Tuesday to dismiss a suit alleging it failed to tell securities investors it had hand-selected and then bet against toxic home loans in a $2 billion collateralized debt obligation that later failed, saying plaintiff Bayerische Landesbank lacked standing.

Barclays and its co-defendant, asset manager State Street Corp., argued that the New York branch of BayernLB didn't have standing to sue because it was indistinct from its German parent. It's an argument that worked — albeit in...
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