FDIC Demands $2B From Goldman, BofA, Others Over MBS

Law360, New York (August 21, 2012, 1:51 PM EDT) -- The Federal Deposit Insurance Corp. on Friday sued Goldman Sachs & Co., Bank of America Corp. and several other financial institutions in Texas court for $2.1 billion, saying they tricked now-defunct Guaranty Bank into buying shoddy mortgage-backed securities.

The FDIC is receiver for Texas-based Guaranty, which blamed its 2009 collapse on massive losses in its securities portfolio. In three lawsuits, the federal agency says offering documents for the securities omitted important information or made misleading statements regarding the amount borrowed by homeowners, the quality of appraisals,...
To view the full article, register now.