Reuters - Commerzbank sues banks over mortgage losses


Commerzbank has sued four banks in the United States, claiming that they failed to properly monitor billions of dollars in toxic mortgage-backed securities acquired by the German lender before the 2008 financial crisis.

Reuters reports that Bank of New York Mellon and units of Deutsche Bank, Wells Fargo and HSBC were named in the lawsuits filed on Wednesday in Manhattan federal court.

BNY Mellon was the trustee for over $1 billion in mortgage-backed securities bought by Commerzbank and $1.3 billion of investments tied to a collateralized debt obligation, Millstone II CDO, court documents showed.

BNY Mellon "abandoned its obligations to protect the rights of investors," and did nothing to protect the collateral underlying the CDO, Commerzbank said, noting that it suffered $750 million in losses.

Hit the link below to access the complete Reuters articles:

Commerzbank sues BNY Mellon, Wells Fargo, HSBC over mortgage losses

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