Barclays Sued by DZ Bank Over Mortgage-Backed Securities
DZ Bank, Germany’s largest cooperative lender, sued London- based Barclays in New York State Supreme Court in Manhattan today, alleging claims including fraud and negligent misrepresentation, according to a court document.
The bank, based in Frankfurt, also sued JPMorgan Chase & Co., the biggest U.S. lender by assets, and HSBC Holdings Plc, Europe’s biggest bank, in the same court this year over residential mortgage-backed securities.
Kerrie Cohen, a New York-based spokeswoman for Barclays, declined to comment on the lawsuit in an e-mail.
Pools of home loans securitized into bonds were a central part of the housing bubble that helped send the U.S. into the biggest recession since the 1930s. The housing market collapsed, and the crisis swept up lenders and investment banks as the market for the securities evaporated.
The case is Deutsche Zentral Genossenschaftsbank AG v. Barclays Bank Plc, 651708/2012, New York State Supreme Court (Manhattan).
To contact the reporter on this story: Chris Dolmetsch in New York at firstname.lastname@example.org.
To contact the editor responsible for this story: Michael Hytha at email@example.com.