Investor Lawsuit Targets 15 Wall Street Banks For Allegedly Duping It Into Buying $2.4B In Subprime Mortgage-Backed Securities

In Boston, Massachusetts, The New York Times' DealBook blog reports:

• Cambridge Place Investment Management is suing 15 Wall Street [] banks for misleading investors about a total of $2.4 billion in mortgage-backed securities that they sold, The Daily Telegraph reported.

• Cambridge Place, a fund based in Boston, Mass., is suing the U.S. branches of three British banks — HSBC, Barclays and Royal Bank of Scotland — and targeting JPMorgan Chase, Citigroup, Credit Suisse, Deutsche Bank, Merrill Lynch, UBS, Goldman Sachs and Morgan Stanley, according to the report. The lawsuit, filed in Boston, alleges that Barclays, HSBC and R.B..S all sold mortgage-backed securities based on “untrue statements,” The Telegraph said.

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• In her latest Fair Game column, The New York Times’s Gretchen Morgenson noted that the complaint also details the anything-goes lending practices during the subprime mortgage boom.

For more, see Mortgage Investor Sues 15 Banks Over Subprime.