German lender Commerzbank AG is reportedly suing four U.S. banks for almost $2 billion in losses related to mortgage-backed securities.
According to a report in the Wall Street Journal, the German bank is accusing the four banks – Deutsche Bank AG’s U.S. unit, Deutsche Bank National Trust Co., Bank of New York Mellon Corp. Wells Fargo NA, and HSBC Bank USA NA – of failing to properly monitor losses on residential mortgage-backed securities for which they acted as trustees on behalf of Commerzbank.
In each of the lawsuits, Commerzbank accuses the bank in question of breaching “contractual and fiduciary duties.”
The mortgage-backed securities were purchased between 2005 and 2007. The securities lost almost their entire value when the financial crisis hit in 2008. Commerzbank is making a last attempt to recoup before the claims lapse.
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