This looks very similar to the case against Goldman Sacs where they were sued for selling/brokering mortgage backed securities. All participants in the trade were professionals and all the information they needed was freely available. I think GS settled in the end. Unfortunately, the case doesn't have to be that strong it just has to be strong enough to force a bank to settle. The market won't like it for sure though. I hold a few RBS-G and some NWBD. It might create a nice opportunity to buy some NWBD but I expect the dollar prefs will get hit hard. Fortunately, I mostly hold Lloyds prefs now in banks and so I've dodged that bullet but only by complete luck.Log
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