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Trustee for Thornburg Mortgage sues five of its banks for $2.2bn
THE trustee for home loan provider Thornburg Mortgage is suing Goldman Sachs, Barclays and other banks for a total of $2.2bn (£1.3bn), blaming them for the company’s bankruptcy.
The trustee filed four separate lawsuits, one of which blames a “collusive scheme” by units of JPMorgan Chase, Citigroup, Royal Bank of Scotland, Credit Suisse and UBS for driving the company into bankruptcy.
Maryland lawyer Joel Sher has accused the banks of acting together to use a series of unjustified margin calls to extend their control over Thornburg, once a leading provider of “jumbo” home loans.
Citigroup said the lawsuit was without merit. Credit Suisse and UBS declined to comment. JPMorgan and RBS did not immediately return a call for comment.