Claims Against Barclays Dismissed, NY AG To Sue Credit Suisse: Financial Business Update
On Monday, Judge Denise Cote of United States District Court in Manhattan threw out a number of claims brought by the Federal Housing Finance Agency which alleged that Barclays (NYSE:BCS) misled Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) on the purchase of $4.9 billion in risky mortgage debt between October 2005 and February 2007. The agencies sued the bank for damages, but the judge said that the lawsuit could move forward under other claims including violations of federal securities law.
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New York State Attorney General Eric Schneiderman is readying a civil lawsuit against Credit Suisse (NYSE:CS) which he says misled investors in regards to mortgage-backed securities, according to a knowledgeable source. The suit to be filed Wednesday will claim that the bank misrepresented the quality of loans packaged in securities. In October, the state officer filed a similar claim against JPMorgan Chase & Co. (NYSE:JPM) concerning mortgage-backed securities packaged and sold by Bear Stearns, the firm JPMorgan acquired at $10 per share in March of 2008.
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