More On FHLB Of San Francisco Suit To Void Purchases Of Billion$ In Residential Mortgage Backed Securities

In Northern California, The New York Times reports:

• LAST week, the Federal Home Loan Bank of San Francisco sued a throng of Wall Street companies that sold the agency $5.4 billion in residential mortgage-backed securities during the height of the mortgage melee. The suit, filed March 15 in state court in California, seeks the return of the $5.4 billion as well as broader financial damages.

• The case also provides interesting details on what the Federal Home Loan Bank said were misrepresentations made by those companies about the loans underlying the securities it bought.

For more, see Pools That Need Some Sun.

For the FHLB of San Francisco press release issued last week, see Statement Regarding PLRMBS Litigation.