FDIC Demands $2B From Goldman, BofA, Others Over MBS
Law360, New York (August 21, 2012, 1:51 PM EDT) -- The Federal Deposit Insurance Corp. on Friday sued Goldman Sachs & Co., Bank of America Corp. and several other financial institutions in Texas court for $2.1 billion, saying they tricked now-defunct Guaranty Bank into buying shoddy mortgage-backed securities.
The FDIC is receiver for Texas-based Guaranty, which blamed its 2009 collapse on massive losses in its securities portfolio. In three lawsuits, the federal agency says offering documents for the securities omitted important information or made misleading statements regarding the amount borrowed by homeowners, the quality of appraisals, owner-occupancy rates and underwriting standards by loan originators.
According to one of the complaints, faulty...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!