Oh give me a fucking break! Since when did PIMCO not realize the risk in MBS?! I’m sorry for the vulgarity – but please don’t waste the court’s time trying to convince a judge that has over extended his retirement funds buying your ridiculous stocks by telling him you, PIMCO, are shocked… How stupid do you think judges really are?
Pacific Investment Management Co and other investors have sued Citigroup Inc over the bank’s alleged failure to properly monitor toxic securities backed by more than $13.8 billion of mortgage loans, resulting in $2.3 billion of losses.
According to a complaint filed Tuesday night in a New York state court in Manhattan, Citigroup breached its duties as trustee for the 25 private-label trusts dating from 2004 to 2007 by ignoring “pervasive and systemic deficiencies” in how the underlying loans were underwritten or being serviced.
The investors said Citigroup looked askance at the loans’ “abysmal performance” out of fear it might “jeopardize its close business relationships” with loan servicers including Wells Fargo & Co and JPMorgan Chase & Co, or prompt them to retaliate over its own problem loans.
Read more at Reutershttp://www.reuters.com/article/2015/11/25/us-citigroup-pimco-lawsuit-idUSKBN0TE2MC20151125#Bk9vqKEToqdG55gP.99
The bugging is so much BS it is hard to believe. But look at the facts here, it is not unlawful to bid the property up, but it’s unlawful to collectively bid it down. The way I see it if the auctioneer and bank accept an offer , who was harmed ?So what the bidders conspired among themselves to get the property cheaper, no one can force the seller bank to accept a cheaper offer.Looks to me that the free market is in place.And to actually dig into the facts it most likely would find the seller bank did not own the lien that was being sold.