PIMCO and BlackRock suing the banks

PIMCO and BlackRock suing the banks

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PIMCO and BlackRock suing the banks

World’s two largest capital management company, BlackRock and PIMCO, have filed lawsuits against the banks in the case of mortgage bonds.

Even after years, investors are still trying to recover losses incurred during the crisis, and as the main cause of all the troubles began mortgage bonds, then the responsibility lies with the banks.

Charges are the same: the banks knew that those structured products built on bonds of extremely poor quality, but still sold them to customers, breaking all possible standards of service quality.

Among the largest financial institutions who have this time to stand trial, Citigroup and Deutsche Bank. Irresponsible behavior of these banks resulted in the loss of billions of dollars.

Another representative of Wall Street – Bank of New York Mellon – will also be responsible before the Supreme Court in New York. In lawsuits said that the bank did not take absolutely no effort to protect customers, but on the contrary, deliberately ignored the lack of credit quality for profit.

Recall that the pools of mortgages banks packaged into so-called CDO and then sold them as high-quality product with a high income. In fact it was a grand scam and greed of bankers knew no bounds. Wall Street bigwigs had the opportunity to earn some quick money, and resist such a temptation no one could. Mortgages issued in all in a row without much analysis of the borrower, so it was not necessary, because all these loans are packaged and sold quickly.

In the list of those who will have to answer before the court, there are other names, such as HSBC and Wells Fargo.

As reported by Bloomberg, almost all financial institutions declined to comment, and Wells Fargo said they strongly disagree with the view that the bank in any way liable for damages.

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