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Cambridge Place Investment Management is suing 15 Wall Street of 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:
Cambridge Place also blames the “mortgage originators” – the sub-prime lenders responsible for assessing borrowers – for bending the truth about the worth of the loans.
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