Allstate sues two more banks over mortgage fraud

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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Comments

  1. bob madden

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

  2. woody188

    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.

    • Almandine

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

  3. Carl Nemo

    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 **==