Allstate says Citigroup and Deutsche Bank AG hid the risks on more than $385 million mortgage securities and it bought from the two banks and now it wants revenge.

Lawsuits filed by the largest publicly-traded U.S. home and auto insurer brings the total lawsuits against banks to four.  Allstate has already filed similar lawsuits against Bank of America and JPMorgan Chase.

The company is trying to recover more than $1.8 billion in securities and says the banks are guilty of fraud.

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Doug Thompson published his first story and photo at age 11 -- a newspaper article about racism and the Klan in Prince Edward County, VA, in 1958. From that point on, he decided to become a newspaperman and did just that -- reporting news and taking photos full-time at his hometown paper, becoming the youngest full-time reporter at The Roanoke Times in Virginia in 1965 and spent most of the past 55+ years covering news around the country and the globe. After a short sabbatical as a political operative in Washington in the 1980s, he returned to the news profession in 1992. Today, he is a contract reporter/photojournalist for BHMedia and owns Capitol Hill Blue and other news websites.

5 COMMENTS

  1. Did you know banks used pizza delivery people to handle the sub prime morgages. Gee i wonder what went wrong.

  2. I’ve been advising public employees to demand put backs for their pensions too. Most haven’t a clue as to what I’m talking about. I tell them to call their State AG and demand put backs or prosecution.

    Now who was it kept saying I was lying about the mortgage fraud? 😆

    Be interesting if Allstate wins and the Federal alphabet soup organizations still don’t pursue criminal charges. This crime makes the S&L scandal look like chump change. It’s hard to claim bank reform with the same drivers behind the wheel.

    • That would be GHL… and, yes, S & L was a walk in the park, comparatively speaking. Jail is way too good for them.

  3. A good story for a change with hopefully a constructive trend. Evermore insurance companies including pension funds are suing these crooked banksters. Since our compromised, to gutless government won’t do so maybe these litigants will get not pounds, but megatons of $flesh$ from these crooked sob’s that have effectively destroyed our economy. In fact I hope the bloodbath is so intense that it effectively puts them out of business.

    Carl Nemo **==

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