Citi, RBS, UBS, Deutsche Sued Over Mortgage-Backed Securities

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Citigroup, Royal Bank of and UBS were sued in separate cases in New York, accused of fraud in the sale of a total of $845m in mortgage securities.

Bloomberg reports that DZ Bank has sued Citigroup and RBS, while HSH Nordbank has sued UBS and RBS, according to papers filed Friday in New York State Supreme Court. The German banks say offering materials contained misrepresentations about loans backing the securities, leading to losses.

The DZ Bank case against Citigroup involves $362m in securities, while its RBS claims stem from $279m in securities, according to court papers. The HSH Nordbank case against UBS is over $150m in bonds, and its RBS suit involves $54m.

In the meantime, Reuters reports that German lender Landesbank Baden-Wuertemberg has accused Deutsche Bank of fraud in a $173m lawsuit over the sale of mortgage-backed securities during the financial crisis.

The complaint was filed in the New York State Supreme court by LBBW and Spencerview Asset Management, over the purchase of residential mortgage-backed securities (RMBS) in 2007, a court filing shows.

Citigroup, RBS Sued by DZ Bank Over $641 Million in Bonds

Deutsche Bank sued by rival LBBW over mortgage-backed securities

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