Morgan Stanley has asked that the lawsuit brought by IKB Deutsche Industriebank over $147m in residential mortgage-backed securities (RMBS) losses be dismissed by the New York appeals court since it did not perform the necessary due diligence on its investments. The bank’s lawyers argued that a judge should dismiss the case because of “procedural defects” and said they would appeal to the US supreme court.
Morgan Stanley has asked that the lawsuit brought by IKB Deutsche Industriebank over $147m in residential mortgage-backed securities (RMBS) losses be dismissed by the New York appeals court since it did not perform the necessary due diligence on its investments. The German bank accuses Morgan Stanley of offering documents that omitted or mis-characterised various underwriting standards surrounding loans underlying RMBS.