Four months after Space Coast Credit Union was permitted toamend its complaint regarding alleged losses of more than $100million in collateralized debt obligations, the defendant banks andrating firms are again seeking to have the suit dismissed.

On March 18, the $3 billion Space Coast in Melbourne, Fla.,amended its complaint to include several claims including allegedfraud and unjust enrichment.

Among the banks named in the Space Coast suit were Wells FargoSecurities, formerly known as Wachovia Capital Markets, J.P. MorganSecurities, formerly known as Bearn Stearns & Co. Inc., MerrillLynch and its subsidiary, Merrill Lynch Home Loans, UBS Securitiesand Barclay's Capital Inc. Other defendants named were Richard S.Fuld Jr., former chairman/CEO of Lehman Brothers, and Moody'sInvestors Service Inc.

The latest update from the defendants reiterated its positionmade in May 2012 saying the credit union was aware of the risksof CDOs and was warned of the implications of investing insecurities linked to subprime and non-conforming loans.

In addition to claiming Space Coast did not have enough facts tosupport its case, the defendants said the credit union's amendedcomplaint did not have any new claims, according to the latestmotion filed.

The case goes back to March 2012 when Space Coast filed a lawsuit against the banksand rating firms over claims it lost more than $100 million fromcollateralized debt obligations that were sold to Eastern FinancialFlorida Credit Union.

Space Coast acquired the financially troubled Eastern Financial Florida CU in 2009 after it was placed inconservatorship and issued a cease and desist order forquestionable loan practices.

In its complaint, Space Coast said the CDOs led to a phonydemand for residential mortgage loans, which also led to creatingone of the state's largest housing finance catastrophes.

Space Coast also said in its suit that creating and sellingCDOs revolved around shoe-horning residential mortgagesecurities into Moody's and S&P's credit rating models togenerate investment grade ratings. Investors were misled becausethey relied on the credit ratings, the credit union said.