Bloomberg News

Goldman Sachs Sued by DZ Bank Over Mortgage Securities

September 07, 2012

Goldman Sachs Group Inc. (GS:US) was sued by German lender DZ Bank AG over $188.6 million in mortgage-backed securities, at least the third investor this week to sue the bank over mortgage bonds.

Goldman Sachs made material misrepresentations about loans that were bundled into the securities, DZ Bank said in a filing today in New York State Supreme Court. The claims include fraud and negligent misrepresentation, the lender said.

Two other German lenders -- IKB Deutsche Industriebank AG (IKB) and Bayerische Landesbank -- are suing New York-based Goldman Sachs over losses on mortgage bonds, according to filings this week in state supreme court.

Michael DuVally, a spokesman for Goldman Sachs, declined to comment.

The case is Deutsche Zentral-Genossenschaftsbank AG v. Goldman Sachs Group Inc., 653134-2012, New York State Supreme Court, New York County (Manhattan).

To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net


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  • GS
    (Goldman Sachs Group Inc/The)
    • $176.82 USD
    • 1.80
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