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 assigned to the trusts before they were sold.

The Financial Times reported that officials who were party to the recent agreement between the nation’s largest banks and the US Department of Justice and many of the nation’s state attorney’s general that released the banks from criminal prosecution for the same acts alleged in the Nordbank lawsuits, said that Barclay’s “alleged failure to properly transfer and maintain loan files” is the same activity that “led in part to the ‘robosigning scandal’.”

it’s all true:
HSH sues Barclays over mortgage securities