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Bank Hapoalim files $721M suit against Bank of America
BoA sued for fraud, breach of contract over mortgage-backed securities
Bank Hapoalim BM (POLI) has filed a $721 million damages suit against Bank of America Corp, citing fraud and breach of contract, Ynet has learned.
The suit was joined by Principal Life Insurance and was filed with the New York State Supreme Court in Manhattan.
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According to a Bloomberg report, the suit was filed over the sale of almost $960 million worth of mortgage-backed securities.
Principal Life is seeking damages over its $239 million investment. The company has sued JPMorgan Chase & Co. for over $114.9 million worth of the securities.
Bank Hapoalim is seeking $721 million in damages.
The report noted that "home loans securitized into bonds were a central part of the housing bubble," which largely sent the United States into its biggest recession since the 1930s.
Lawrence Grayson, a spokesman for Bank of America, had no immediate comment on the lawsuits.
