Bank of America Corporation, US Bancorp Sued For Role As WaMu Bond Trustee-Reuters

Reuters reported that Bank of America Corporation and US Bancorp have been sued by a Chicago pension fund that said they failed to protect investors in their roles as trustees for mortgage backed securities for Washington Mutual Inc. A lawyer whose firm represents investors in both cases has said she believed Pauley's watershed decision was the first to let mortgage backed securities investors pursue claims against a trustee under the 1939 federal Trust Indenture Act. Saying it invested in six of those trusts, the fund accused both banks of failing to take possession of loan files or ensuring they were complete, or requiring Washington Mutual to fix or buy back defective loans. Lawrence Grayson, a Bank of America spokesman, declined immediate comment, saying the bank was reviewing the complaint.