NORTHERN Rock is suing
The so-called bad bank part of the failed British lender was given permission by a
Northern Rock's investment was
If Northern Rock Asset Manage-ment's (NRAM) suit is successful, the French bank could see a wave of other suits launched in its wake.
But SocGen is fighting the case.
But despite this,
The court struck out SocGen's initial objections that the sale document noted that the seller did not take res-ponsibility for some of the marketing material.
As the case goes forward, SocGen will have to present internal documents to the court, and its staff or former workers will give evidence.
The French bank has argued so far that it never gave Northern Rock the assurances of asset quality that
The case then goes to a jury to decide whether or not SocGen did mislead Northern Rock.
Depending on the outcome, this suit may be followed by others.
"Different investors have different attitudes to bringing suits - some have put these losses behind them," said
"But this is the first suit on this particular CDO."
He expects the case to take at least another year to reach its conclusion.
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