German Bank Sues Goldman, Citi Over $210M In Bad MBS Bets

Law360, New York (September 5, 2012, 6:33 PM EDT) -- German lender IKB Deutsche Industriebank AG, which was rescued after suffering multibillion-dollar losses on investments in U.S. subprime loans, on Wednesday sued Citigroup Inc. and Goldman Sachs Group Inc. in New York state court, alleging deception involving $210 million in mortgage-backed securities.

The lawsuits, which involve $137 million in securities sold by Citi and $73 million in securities offered by Goldman, represent the latest in a string of complaints IKB has filed against big-name corporations it blames for its staggering losses and subsequent bailouts.

Wednesday's complaints...
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