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Barclays Files Lawsuit Against Bear Stearns In Wake of Subprime Collapse
Published: December 21, 2007
New York--U.K. bank Barclays filed a lawsuit against Bear Stearns Wednesday night in New York relating to the collapsed complex subprime security-packed hedge fund that securities house Bear Stearns managed, The Financial Times reports.
Although the suit is not the first to come from the U.S. subprime crisis, it is unique because the bank is ready to publicly present its case against Bear Stearns--and could be indicative of future lawsuits, the Times says,
Bear Stearns, which faces other claims from hedge fund investors, said the Barclays lawsuit was unjustified.
Other banks also have seen shareholder lawsuits questioning whether or not the banks may have minimized their subprime investment losses, according to the Times, which could lead to a number of cases similar to the lawsuits filed after the stock market boom.
Citigroup, JPMorgan Chase and other banks paid billions in settlements in those lawsuits, filed by shareholders claiming they played a role in Enron's demise.
