Foreign banks continue to drive volume of RMBS litigation claims filed in New York state court. The latest claim is a $1.2 billion lawsuit against Morgan Stanley filed by German lender Bayerische Landesbank.
Bayerische Landesbank asserts claims on almost $486 million in RMBS purchased in 22 offerings in 2006 and 2007.
The latest filing comes days after Brussels-based, French-Belgian lender Dexia filed a claim in New York State Court against JPMorgan over losses on $1. Billion of MBS sold by Bear Stearns which was acquired by JPMorgan during the financial crisis.
According to a Bloomberg report, the bank also filed a claim yesterday against Morgan Stanley on more than $680 million worth of RMBS bought in 21 offerings in 2006 and 2007.
Both banks say in their complaints that the loans underlying the securities were riskier than promised and that Morgan Stanley "knew or recklessly disregarded" that the loans didn't conform to underwriting standards.