Citigroup Inc., Goldman Sachs Group Inc. and UBS AG were sued separately in New York over losses on $368.7 million in mortgage-backed securities, Bloomberg News reported yesterday. The three banks made "material misrepresentations" about the loans backing the securities and about the transfer of the loans into trusts, according to filings yesterday in New York State Supreme Court. IKB Deutsche Industriebank AG sued Citigroup over losses on $137.4 million in mortgage securities and also sued Goldman Sachs over $73.2 million in securities. IKB, a German lender, said it sold the securities at a loss. UBS, based in Zurich, was sued by Sealink Funding Ltd. over $158.1 million in bonds. The securities at issue in the UBS case are either held by Sealink or were previously sold at a loss, according to court papers.
