IKB Goes After Morgan Stanley Over $147M In Bunk MBS

Law360, New York (November 19, 2012, 2:22 PM EST) -- Awash in red ink from U.S. subprime loans, German lender IKB Deutsche Industriebank AG launched its latest legal case Friday over mortgage-backed securities, blaming Morgan Stanley & Co. Inc. for $147 million in losses on instruments it says were deceptively marketed to conceal major quality concerns.

The Dusseldorf-based bank, which was rescued after seeing billions of dollars in subprime investments vanish, accuses Morgan Stanley of issuing offering documents that omitted or mischaracterized various underwriting standards surrounding loans that were pooled together for the securities.

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