TMST Trustee Seeks to Pursue Lawsuit Against JPMorgan, Citigroup

The trustee handling the former Thornburg Mortgage Inc. (THMRQ) bankruptcy asked a judge to let him pursue a lawsuit against banks including JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C), saying they helped to push the company into default by making inflated margin calls. The banks are seeking to get the suit brought by trustee Joel Sher dismissed. Sher sued the banks in May, seeking to recover $2 billion for creditors of the company now called TMST Inc.

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net

To contact the editor responsible for this story: Stephen Farr at sfarr@bloomberg.net

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