Space Coast Sues Barclays, State Street
The $3.1 billion Space Coast Credit Union has filed a suit against two investment firms over the alleged misrepresentation of a collateralized debt obligation that the cooperative said led to financial losses.
The Melbourne, Fla.-based credit union claimed that a CDO from Barclays PLC contained assets that were set up to fail. The Barclay Markov CDO is backed by $2 billion of mortgage and other debt, Reuters reported last week. In the Space Coast complaint, State Street Corp., the co-writer of the offer and Markov’s collateral manager, is also named.