Bloomberg News

Sealink to Sue Over $948.8 Million in Mortgage Securities

February 22, 2012

(Updates with excerpt from filing in second paragraph.)

Feb. 22 (Bloomberg) -- Sealink Funding Ltd., an Ireland- based investment firm, took legal action against banks including Royal Bank of Scotland and Credit Suisse over $948.8 million in residential mortgage-backed securities.

Sealink said the banks, which also include Deutsche Bank AG, Nomura Holdings Inc. and Bank of America Corp., misrepresented underwriting standards in the offering materials for the securities, according to a filing yesterday in state court in New York.

“The offering materials also contained material misrepresentations and omissions regarding key statistical characteristics of the mortgage loans underlying the securities,” Sealink said.

Banks such as Credit Suisse acquire mortgage loans from the issuers and bundle them into securities that are sold to investors and firms such as Sealink. Sealink said it was established to receive, hold and manage residential mortgage- backed securities.

Sealink seeks at least $948.8 million in damages.

The case is Sealink v. Royal Bank of Scotland, 650484-2012, State Supreme Court of the state of New York (Manhattan).

--Editors: Andrew Dunn, Fred Strasser

To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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