March 21, 2019 / 10:31 PM / in a month

U.S. banks win dismissal of FDIC lawsuits over mortgage-backed bonds

A federal judge has dismissed lawsuits by the Federal Deposit Insurance Corp accusing Citibank, Bank of New York Mellon and U.S. Bank of failing in their duties as trustees for money-losing mortgage bonds once owned by a failed Texas bank.

In a decision on Wednesday, U.S. District Judge Andrew Carter in Manhattan said the FDIC, the receiver for Austin-based Guaranty Bank, lacked standing to sue because it had sold the mortgage-backed bonds after taking over the bank in 2009.

To read the full story on WestlawNext Practitioner Insights, click here: bit.ly/2TZ1Q8y

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