Israeli Bank Targets Morgan Stanley In $281M RMBS Suit

Law360, New York (August 30, 2012, 12:42 PM EDT) -- Bank Hapoalim BM, Israel's largest bank, hit several Morgan Stanley & Co. Inc. units with a $281 million fraud lawsuit in New York state court Wednesday, accusing the financial giant of making misrepresentations over allegedly risky residential mortgage-backed securities.

The Morgan Stanley units had knowingly made misrepresentations and omissions regarding the loans pooled into the RMBS, the underwriting standards for those loans, the transfer of those loan pools into trusts and the legal validity of the trusts themselves to collect interest and principal payments on the...
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