Credit Agricole Sued in U.S. Over $70 Million of CDOs
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Credit Agricole SA, France’s third-largest bank, was sued for fraud in New York by investors alleging the lender tricked them into buying $70.5 million worth of collateralized debt obligations that were designed to fail.
Loreley Financing claimed in the lawsuit filed Oct. 22 in New York State Supreme Court that Credit Agricole’s Calyon unit allowed a hedge fund to pick low-quality assets for three CDOs the fund could then bet against.