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Citigroup, Goldman, UBS sued over mortgage-backed securities.

SNL Financial (9/6, Vyas) reports that lawsuits were separately filed in New York State Supreme Court against Citigroup, Goldman Sachs, and UBS AG "in connection with losses on $368.7 million in mortgage-backed securities." SNL says the suits "accused the defendants of misleading investors about the loans backing the securities and about the transfer of the loans into trusts, among other things."

Bloomberg News (9/6, McLaughlin, 1M) reports, "Citigroup Inc., Goldman Sachs Group Inc. and UBS AG were sued separately in New York over losses on $368.7 million in mortgage-backed securities. The three banks made 'material misrepresentations' about the loans backing the securities and about the transfer of the loans into trusts, according to filings" Wednesday in New York State Supreme Court. Citigroup and Goldman Sachs were sued by IKB Deutsche Industriebank AG. Meanwhile, Sealink Funding Ltd. sued UBS.

BayernLB sues Goldman Sachs over MBS losses. Bloomberg News (9/6, McLaughlin, 1M) reports, "Goldman Sachs Group Inc. was accused of fraud by German lender Bayerische Landesbank in a lawsuit over losses on mortgage-backed securities. BayernLB, which bought about $511.9 million in securities in 16 offerings that Goldman Sachs underwrote, said the securities were riskier than promised and were 'destined to fail,'" according to court documents filed Wednesday in New York State Supreme Court.

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