Seattle FHLBB Goes After Wall Street Firms In Attempt To Force Them To Buy Back Soured Mortgage-Backed Securities

In Seattle, Washington, The Wall Street Journal reports:

• The Federal Home Loan Bank of Seattle has launched a series of lawsuits against Wall Street banks, seeking to force them to buy back souring mortgage-backed securities. In 11 separate lawsuits filed in late December in King County Superior Court in Washington, the Seattle bank alleges that it was misled by underwriters about the quality of $4 billion of securities it purchased as investments at the height of the housing boom. The Seattle bank is seeking to force the firms to repurchase the securities, plus interest.

For more, see Home Loan Bank Sues Wall Street Firms (requires paid subscription; if no subscription, try here, then click link for the story).