M&T Bank sues Deutsche Bank, others over CDO losses
NEW YORK, June 16 (Reuters) - M&T Bank Corp (MTB.N), a large U.S. mid-Atlantic regional bank, has sued Deutsche Bank AG (DBKGn.DE) and others to recover more than $82 million it said it lost by investing in collateralized debt obligations.
In a complaint filed Monday with the New York State Supreme Court in Erie County, M&T accused the defendants of fraudulently representing that the "Gemstone" securities it bought in February 2007 were "safe, secure and nearly risk-free," when in fact that was not the case.
M&T accused the German bank and HBK Investments LP, which it said marketed the Gemstone notes, of having "dramatically reduced the underwriting standards and due diligence performed in selecting and assembling the collateral underlying the notes they marketed."
Deutsche Bank was not immediately available for comment.
(Reporting by Jonathan Stempel in Bangalore; additional reporting by Dan Wilchins in New York)
