- The U.S. Securities and Exchange Commission were granted its request to freeze Luca International Group LLC’s CEO’s assets. He allegedly engaged in a “Ponzi-like” scheme with EB-5 investors.
- New York appeals court revived claims against Nomura Holdings Inc. brought by investors finding that HSBC can seek damages for misrepresentation in mortgage-backed securities transactions, which ended up being defective loans.
- In case brought by U.S. Bank against Credit Suisse, a New York judge refused dismissal for failing to buy back bad loans worth $1 billion, finding that the servicing agreement with U.S. Bank required it to do so.
- The Internal Revenue Service approved Bank of America’s $8.5 billion settlement for mortgage-backed securities purchased from Countrywide.
- JPMorgan and MassMutual have settled in case where JPMorgan had allegedly cause MassMutual to lose $2.3 billion in mortgage-backed securities.
Tag Archives: US Bank
Monday’s Adjudication Roundup
- Bank of America, Wells Fargo & Citigroup cannot escape the City of Miami’s discriminatory lending suit, which caused a loss in city tax revenue.
- Texas federal judge sanctions the US Environmental Protection Agency for failure to turn over documents that would have killed a Clean Water Act suit brought against Thomas Lipar, a property developer, and four other Lipar companies.
- Mortgage borrowers of Citibank and JPMorgan Chase seek class certification in suit over property inspection fees.
- If appeal fails from Second Circuit judgment, Nomura Holdings & Royal Bank of Scotland Group will pay $33 million more than the $806 million damages for selling risky mortgage securities.
- A New York federal judge found that federal law did not cover many claims in class action against Citibank for “mishandling mortgage-backed securities in more than $17 billion worth of pooled loans.”
- Property owners have petitioned the U.S. Supreme Court to determine their standing in suit against several banks, including Bank of New York Mellon, HSBC, US Bank, Deutsche Bank & Wells Fargo, after the Second Circuit denied their claims that those banks did not own their mortgages.
- A class action over highly leveraged mortgage-backed securities against Goldman Sachs is dismissed for lack of evidence.
- The Securities Industry and Financial Markets Association (SIFMA) claims the Fifth Circuit incorrectly interpreted an FDIC statute, by extending the statute of limitations period, when it reinstated $2.1 billion mortgage-backed securities suit, which conflicts with Supreme Court precedent in CTS Corp. v. Waldburger.
Monday’s Adjudication Roundup
- Building investors sue Waterbridge Capital LLC for $10 million for allegedly selling units and pocketing profits, refusing to pay back its investors.
- Hurricane Sandy $25 million contract-insurance suit is dismissed against one of the defendants, Arch Insurance Group and its subsidiary, because the underlying policy limits hadn’t been reached and thus Arch did not have any liability.
- In $189 million mortgage fraud suit, the federal government claims that Wells Fargo cannot access documents it withheld because “the release of some documents doesn’t waive protects for all of them.”
- The Federal Deposit Insurance Corp. sues US Bank and Citigroup, Inc. for allegedly failing as trustee of residential mortgage-backed securities leading to a $695 million loss to the insurance fund.
Monday’s Adjudication Roundup
- Massachusetts’s federal court found that a unit of Deutsche Bank AG failed to vet some residential mortgage-backed securities, which mislead Massachusetts Mutual Life Insurance Co.
- US Bank filed an amended complaint claiming that Citigroup Global Markets Realty Corp. and CitiMortgage Inc. in suit over bad mortgage-backed securities.
- After PHH Corp. was ordered to pay $109 million in penalties by the CFPB in a mortgage kickback scheme, it has asked to D.C. Circuit to reconsider.
- New York state court dismisses Commerzbank AG’s suit against UBS AG, Credit Suisse Group AG, and others due to the statute of limitations. Commerzbank brought suit alleging loan quality fraud in the sale of $1.9 billion in mortgage securities.
- NY federal court dismissed a derivative shareholder suit against American Realty Capital Properties Inc. as the suit did not fulfill the state law requirement that demand be made on the board of directors before bringing suit and this case did not meet the narrow futility exception to such demand. The shareholders brought suit over accounting issues that led to a sharp drop in stock value and destroyed a possible $700 million sale.
- In suit against Amazon for breach of contract, The Durst Organization will not be able to force Amazon to sign a $20 million per year lease. The court found that the letter of intent does not compel the retailer to execute the lease. However, Durst may be able to recover under the additional breach of duty and fraud claims.
- In a historical decision, the U.S. Supreme Court held that the Fair Housing Act covers unintentional discrimination through disparate impact, citing to the deep racial divides in the 1960s.
- US Bank, as a trustee of Lehman XS Trust, brings suit against Bank of America and Countrywide Financial for $178 million for alleged breach of representations and warranties in sale of residential mortgage loans.
Monday’s Adjudication Roundup
- NY Federal Court ended the suit against US Bank and Bank of America brought by Blackrock and NCUA for failure to properly oversee residential mortgage-backed security trusts finding that most of the trusts fell under state law.
- Deutsche Bank, Morgan Stanley and UBS Securities have settled with Federal Home Loan Bank of Boston for misleading it to purchase $5.9 billion in bad mortgage-backed securities.
- Associated Bank agrees to $200 million, record-breaking settlement with US Department of Housing and Urban Development in discriminatory lending suit.
Monday’s Adjudication Roundup
- The Financial Industry Regulatory Authority (FINRA) has ordered Goldman Sachs to pay National Australia Bank $100 million over $80 million in collateralized debt obligations.
- US Bank escapes liability under the False Claims Acts for filing FHA insurance claims without complying with HUD requirements.
- California federal judge grants summary judgment in suit against Bank of America for allegedly targeting minority neighborhoods with predatory loans in discriminatory lending suit.
Monday’s Adjudication Roundup
- Court denies US Bank’s opportunity to revive suit against Citigroup over hundreds of millions of dollars in mortgage-backed securities sold during the financial crisis.
- IL court refuses to dismiss suit against Bank of America over lowering underwriting standards for borrowers protected by the Fair Housing Act.
- National Credit Union Administration sues HSBC claiming it failed as trustee for $2 billion of residential mortgage-backed securities trusts and lead to the downfall of five credit unions.
