Deutsche Bank Sues GE Capital Over $666M In Bad MBS
Law360, New York (September 16, 2013, 5:05 PM EDT) -- Deutsche Bank National Trust Co. sued General Electric Capital Corp. and its subsidiary WMC Mortgage LLC in Connecticut federal court Friday for allegedly lying about the quality of 3,399 mortgages underlying $666 million in securitized loans.
WMC originated most of the loans in the trust and was listed on the contract as the responsible party. WMC's promised cash flows never materialized, costing the trust and everyone invested in it more than $500 million, Friday's complaint alleged. WMC was also accused of violating its contract by refusing to buy back bad mortgages.
Deutsche Bank brought the suit as the fund's trustee, on...
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