Trustee Sues Temple-Inland for $1B -WSJ

A court-appointed trustee has filed a lawsuit against Temple-Inland (NYSE: TIN), former parent of Guaranty Financial Group, contending that it loaded up the bank with risky securities and siphoned nearly $600 million in dividends from its coffers.

Kenneth Tepper, representing the bank's creditors and the FDIC, is seeking more than $1 billion in damages from Temple-Inland. The 93-page lawsuit states "Temple-Inland's outrageous conduct rendered [Guaranty] insolvent, undercapitalized and doomed to fail, costing [Guaranty], its creditors and the federal government over $1 billion.

Temple-Inland said the suit has no merit and it will defend itself "vigorously."