Stung by its investments in private-label MBS, the Federal Home Loan Bank of Seattle is suing several Wall Street firms in an effort to have them repurchase assets.

"The complaints seek to exercise the Seattle Bank's rights to rescind transactions in which underlying loans did not have the characteristics described in the prospectuses," the FHLB said in a prepared statement. "The Seattle Bank has a responsibility to its member shareholders to enforce its rights with respect to these matters."

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