U.S. Supreme Court says banks cannot appeal in FHFA case

WASHINGTON Mon Oct 7, 2013 9:39am EDT

WASHINGTON Oct 7 (Reuters) - The U.S. Supreme Court on Monday said banks sued by the U.S. Federal Housing Finance Agency over mortgage-backed securities that were sold to Fannie Mae and Freddie Mac cannot appeal a preliminary lower court ruling they object to.

In 2011, the FHFA sued 18 banks, including Barclays Plc , Bank of America Corp, Deutsche Bank AG , Goldman Sachs Group Inc and JPMorgan Chase & Co, accusing them of violating securities laws by misleading Fannie and Freddie about $200 billion in mortgage-backed securities they purchased. The Supreme Court said that banks involved in 13 lawsuits now before the same judge that have yet to be settled did not have permission to seek review of a New York-based 2nd U.S. Circuit Court of Appeals decision from April.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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