HSH Nordbank AG, a German regional lender bailed out during the financial crisis, sued Goldman Sachs Group Inc. and Morgan Stanley over more than $634 million in residential mortgage-backed securities, Bloomberg News reported yesterday. HSH Nordbank accused Goldman Sachs and Morgan Stanley, both based in New York, of making "material misrepresentations and omissions" about the underwriting standards used to issue mortgage loans that were pooled together into the securities, according to documents filed Aug. 24 in New York State Supreme Court in Manhattan. HSH Nordbank sued Goldman Sachs over $110 million in mortgage securities and Morgan Stanley over $524 million of the investments, according court papers.
