A federal judge this week ruled that the court-appointed trustee overseeing the liquidation of Thornburg Mortgage, Santa Fe, can move forward with a lawsuit against Barclays Capital alleging the investment banker made improper margin calls that helped drive the jumbo lender/servicer into bankruptcy.

According to a report by Dow Jones, Judge Ellen Lipton Hollander of the U.S. District Court in Baltimore said the trustee can sue Barclays for at least $94 million over the margin calls, and subsequent seizure and sale of the Jumbo MBS that Thornburg financed through BarCap. She dismissed, however, the trustees' claim that the bank acted in bad faith. A BarCap spokeswoman declined to comment on the ruling.

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