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Deutsche and BNP Paribas Sue Bank of America over Breach of Contract (DB,BAC)

11/25/2009-Bank of America (NYSE:BAC) is being sued separately by both BNP Paribas and Deutsche Bank (NYSE:DB), who both claim that they lost millions because of the bank's breach of contract.

BNP and Deutsche both filed separate lawsuits today in a Manhatten court saying they purchased an aggregate of $1.6 billion in asset-backed notes issued by a special purpose firm called Ocala Funding LLC. Both firms maintained that they demanded the deal's trustee, Bank of America, to hold $1.6 billion in cash or mortgage loans as collateral.

Write to Chip Brian at cbrian@tradethetrend.com

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Related terms: bank, contract, market, mortgage, nyse, securities

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