Company News

AG Mortgage seeks to prevent RBC from auctioning off mortgage debt

March 25 (Reuters) - AG Mortgage Investment Trust on Wednesday sought a court order to prevent Royal Bank of Canada (RBC) from auctioning off nearly $11 million of commercial mortgage-backed securities that serve as collateral for defacto loans to AG, according to a court filing.

RBC, Canada’s biggest lender, and other banks have taken advantage of illiquidity due to a market selloff to mark down these assets and “to trigger widespread margin calls,” AG said in a request for a temporary restraining order and injunction filed in the U.S. Southern New York District Court.

A RBC spokeswoman declined to comment. (Reporting By Nichola Saminather in Toronto and Brendan Pierson in New York; Editing by Cynthia Osterman)