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 Dusseldorf-based bank, which was rescued after seeing billions of dollars in subprime investments vanish, accuses Morgan Stanley of offering documents that omitted or mischaracterized various underwriting standards surrounding loans underlying RMBS.New York Supreme Court Judge Marcy Friedman in October 2014 dismissed two claims from the suit, but left much of the... 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 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.