“Subprime” Northern Rock can attack Societe Generale fraud in the United States

Le Monde. fr (translated in English):

 

An American court refused to classify without following a complaint from the British bank Northern Rock, which accused Société Générale of having cheated on the quality of subprime mortgages ( “subprime” ) that it had sold him, opening the way for a lawsuit against the French bank.

According to court documents released Tuesday, Aug. 12, Judge Melvin Schweitzer New York believes that Northern Rock debacle saved from “subprime”by the British state has evidence “sufficient” to deal in justice Société Générale fraud.

34 MILLION DOLLARS CLAIMED

The French bank may still avoid a lawsuit by entering into a settlement agreement.And in case of trial, it would not take place before 2015, said counsel for Northern Rock, the British bank that according to Societe Generale claims $ 34 million.

In detail, accuses Northern Rock bank financing and investment Societe Generale, SG CIB, him having sold in June 2007 related to complex financial products RMBS (Residential Mortgage-Backed Securities) and CDOs toxic loans (collateralized derivatives to credit property).

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