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Thornburg Sues Citi, Goldman, For $2B
Thornburg Mortgage has filed a lawsuit against banks, including JP Morgan Chase, Citigroup and Goldman Sachs.
Thornburg Mortgage has filed a lawsuit against banks, including JP MorganChase, Citigroup and Goldman Sachs, The Wall Street Journal reports. The suit seeks more than $2 billion in judgments for a series of alleged actions that forced the mortgage lender into bankruptcy.
The suit, filed by trustee Joel Sher, alleges that the banks overloaded Thornburg with improper margin calls connected to mortgage backed securities, the acquisition of which had been financed by the banks. Other banks in the suit are Bank ofAmerica and Countrywide Home Loans as well as subsidiaries of Barclays, CreditSuisse, Royal Bank of Scotland and UBS.
Click here for the story from The Wall Street Journal.
Click here for additional coverage from Bloomberg.