HSBC Confronts Deutsche Bank Over $183M In MBS

Law360, New York (September 28, 2012, 3:37 PM EDT) -- HSBC Bank USA added a new wrinkle to a mortgage-backed securities dispute Thursday when it sued a Deutsche Bank AG unit in New York court over alleged contract violations involving $183 million in faulty loans, a move that follows investor litigation against both companies.

HSBC, acting as trustee for Deutsche Bank subsidiary Ace Securities Corp., accuses the German lender’s affiliate DB Structured Products Inc. of extensive deception as to the quality of 3,700 residential mortgage loans it purchased and securitized in 2006. 

Hundreds of the loans...
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