German lender Commerzbank sues Wells Fargo, others
German lender Commerzbank AG is suing four U.S. banks in an attempt to hold the banks accountable for almost $2 billion in losses related to mortgage-backed securities, The Wall Street Journal reported.
According to court documents viewed by the Journal, the German bank claims that the four banks — Deutsche Bank AG’s U.S. unit, Deutsche Bank National Trust Co., Bank of New York Mellon Corp., Wells Fargo Bank NA and HSBC Bank USA NA — failed to properly monitor losses on residential mortgage-backed securities for which they acted as trustees on behalf of Commerzbank.
The investments, which lost virtually their entire value during the mortgage debt crisis, were purchased by Commerzbank in 2005-2007. The bank is making a last attempt to secure the funds or some of the funds before the claims lapse.
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