Citigroup (C) is still picking up the pieces from the financial crisis and faces a lawsuit over its alleged failure to properly monitor toxic securities backed by more than $13.8 billion of mortgage loans, resulting in $2.3 billion of losses. Per Reuters:
According to the article, Pacific Investment Management Co and other investors filed a complaint Tuesday night in a New York state court in Manhattan.
Citigroup breached its duties as trustee for the 25 private-label trusts dating from 2004 to 2007 by ignoring "pervasive and systemic deficiencies" in how the underlying loans were underwritten or being serviced.
