Barclay’s bank was sued today for fraud related to the sale of mortgage-backed security investments by the German bank HSH Nordbank, which is seeking over $46 million in damages. Nordbank said in a statement, “all of the mortgages weren’t assigned to trusts backing the securities as promised,” and as law requires. The bank’s attorneys said, “Without such assignment of the mortgages into the trusts, these so-called ‘mortgage-backed securities’ were not actually backed by mortgages.” Nordbank reviewed more than 2000 mortgages that were sold to them by Barclay’s packaged as secured investment vehicles and found that none of the mortgages were […]

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