$2 Billon | Bankruptcy Trustee Sues Goldman Sachs, Barclays, JPMorgan Chase & Company, Citigroup, the Royal Bank of Scotland, Credit Suisse and UBS

Banks Sued in Thornburg Bankruptcy

WILMINGTON, Del. (Reuters) — The bankruptcy trustee for Thornburg Mortgage has sued Goldman Sachs, Barclays and other big banks for a combined $2.2 billion, blaming them for its bankruptcy.

The trustee filed four separate lawsuits, the most extensive of which blames a “collusive scheme” by units of JPMorgan Chase & Company, Citigroup, the Royal Bank of Scotland, Credit Suisse and UBS for driving the company into bankruptcy.

The trustee, Joel Sher, accused the five banks of acting together to use a series of unjustified margin calls to extend their control over Thornburg, which was once a leading provider of “jumbo” home loans.

The lawsuit seeks to recover $2 billon for fraudulent conveyances and transfers by the banks, which had financed Thornburg’s mortgage-backed securities.

Check out the rest at the NY Times here…

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4closureFraud.org


Comments
5 Responses to “$2 Billon | Bankruptcy Trustee Sues Goldman Sachs, Barclays, JPMorgan Chase & Company, Citigroup, the Royal Bank of Scotland, Credit Suisse and UBS”
  1. epiphany says:

    I hope Thornburg is successful. It’s bad enough to have to file for bankruptcy because of your own actions, but it’s devestating to have to file because of the greedy actions of others.

    ep

  2. Joe Loomer says:

    Not sure there won’t be a flood of class actions down the road because of this and other litigation still crawling through the courts.

    Navy Chief, Navy Pride

  3. Pamela says:

    Its too bad they won’t allow us to join thier bankruptcy proceedings and I would LOVE to seee AIG get theres but at least now they see how we were all made dupes by theses meglomanics and how they did it to thier own co-horts in crime.There is no honor among thieves anymore.So lets get this party started!!!

  4. l vent says:

    OH YEAH!!!! AIG SHOULD BE IN THERE SOME WHERE. THEY ENCOURAGED THEM BY INSURING THE GARBAGE THEY WERE SELLLING. AIG ALSO COLLUDED WITH THEM AND ROBBED BILLIONS OF TAX PAYER MONEY IN THE TARP BAILOUT IN ORDER TO COMPENSATE THE FINANCIAL TERRORISTS FOR SCREWING THE AMERICAN PEOPLE..

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