Deutsche Bank Sues GE Subsidiary Over $650 million in RMBS Losses

On June 25, 2012, Deutsche Bank National Trust Company, trustee for the Morgan Stanley ABS Capital I Inc. Trust 2006 WMC-2, filed suit against WMC Mortgage, LLC and GE Capital in the District of Connecticut. The trustee asserts claims based on alleged breaches of contractual representations and warranties in the operative Pooling and Service Agreement regarding the quality of the mortgage loans held in the Trust and the underwriting practices used in connection with the issuance of those loans. The trustee alleges injuries of $650 million. Complaint.

Published In: Business Torts Updates, Civil Remedies Updates, General Business Updates, Finance & Banking Updates, Residential Real Estate Updates

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