U.S. District Judge Katherine B. Forrest in Manhattan threw out three suits alleging breaches over mortgage-backed securities by U.S. Bank and Bank of America (BAC). Per Bloomberg:
The cases are part of a move by investors to target banks in their role as trustees of securities backed by home loans that defaulted after the 2008 credit crisis.
Bank of America and the U.S. Bancorp unit were defendants in two cases. In all three, Forrest allowed the plaintiffs to refile at least some of the claims.
The article explained that in one of the cases, the banks were trustees of securities with an original face value of $5.3 billion. Forrest ruled the National Credit Union Administration Board didn’t have standing to sue after it moved the securities at issue into new, independent trusts.
