Results 1 to 2 of 2
Thread Information
Users Browsing this Thread
There are currently 1 users browsing this thread. (0 members and 1 guests)
-
08-16-2011, 10:21 AM #1
Allstate sues Goldman Sachs over $123 million of Junk RMBS
Allstate sues Goldman Sachs over $123 million of RMBS
Housing Wire
by KERRI PANCHUK
Tuesday, August 16th, 2011, 8:22 am
The insurer is suing the investment bank for common law fraud, fraudulent inducement, negligent misrepresentation and aiding and abetting.
In a suit filed in a New York state court, the insurance giant said Goldman "made numerous misrepresentations to Allstate regarding the features of the mortgage loans."
Allstate accused Goldman of not revealing the toxic and fragile nature of the underlying mortgages. The lawsuit alleges Goldman hid the risk of the securities because "it was able, through the process of securitization, to move the loans off of its books — and off the books of lenders who were indebted to Goldman."
A spokesman for Goldman Sachs declined to comment.
From April 2006 to March 2007, Allstate purchased $123 million of MBS through five securitizations, relying upon Goldman's analysis of the loans, Allstate alleges in the suit.
The insurer is suing the investment bank for common law fraud, fraudulent inducement, negligent misrepresentation and aiding and abetting.
Allstate made similar claims against Morgan Stanley (MS: 17.53 -2.18%) earlier this summer, and has filed several cases against other banks over billions of dollars worth of mortgage-backed securities tainted by alleged toxic collateral.
Sources: http://www.housingwire.com/2011/08/16/a ... on-of-rmbsJoin our FIGHT AGAINST illegal immigration & to secure US borders by joining our E-mail Alerts at http://eepurl.com/cktGTn
-
08-16-2011, 10:22 AM #2
All the major banking institutions are in on this. Wells Fargo, Bank of America, CitiCorp, etc.
Hopefully, some day we will know where these hundreds of billions in stolen money went to.
Much of it went overseas.Join our FIGHT AGAINST illegal immigration & to secure US borders by joining our E-mail Alerts at http://eepurl.com/cktGTn
Long Beach Declares Public Health Emergency Due to ‘Surprising’...
05-04-2024, 07:58 PM in illegal immigration News Stories & Reports