An American court refused to take no action on a complaint from the British bank Northern Rock, which accuses the General Society of having deceived the quality of subprime mortgages ( “subprime” ) that she had sold him, paving the way for a lawsuit against the French bank.
According to court documents released Tuesday, Aug. 12, Judge Melvin Schweitzer New York believes that Northern Rock saved from meltdown “subprime” by the British government, has the “sufficient” to sue Societe Generale fraud.
34 MILLION SOUGHT
The French bank may still avoid a lawsuit by entering into a settlement agreement. And, in case of trial, it would not take place before 2015, said counsel for Northern Rock, the British bank that according to the General Society demands $ 34 million.
In detail , accuses Northern Rock bank financing and investment Societe Generale, SG CIB, for having sold in June 2007 related to complex financial products RMBS (Residential Mortgage-Backed Securities) and CDOs toxic mortgages (derivatives backed securities loans estate).
It argues that Societe Generale knew that some borrowers were insolvent. The French bank has always defended the accusations saying, according to court documents, the losses suffered by Northern Rock were due to the general collapse of the American housing market.
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