The Federal Home Loan Bank of Seattle has filed a lawsuit against six financial institutions that seeks to regain $2 billion that it paid for certificates.
According to a report on Bloomberg News, the Seattle bank has charged the financial institutions with making misleading statements about their asset-backed securities and the credit quality of the mortgages backing them. The Seattle bank is seeking to recover a portion of its purchase price plus interest on certificates it bought since 2005.
The six financial institutions being sued are Bank of America, the Countrywide unit of Bank of America, Barclays, Deutsche Bank, Morgan Stanley and UBS.
SOURCE: Bloomberg News