Deutsche Bank Set to Proceed with $10 Billion Mortgage-Backed Securities Litigation
BSF was retained by Deutsche Bank National Trust Company in its capacity as trustee for 99 mortgage-backed securities to pursue litigation against the FDIC and JPMorgan Chase Bank, NA, for breaches of the MBS agreements. The MBS were issued by subsidiaries and affiliates of Washington Mutual Bank, NA, which was placed in receivership by the FDIC following its failure in September 2008; the FDIC then sold most of WaMu’s assets and liabilities to JPMC for approximately $2 billion.
The claims made by Deutsche Bank – which total in excess of $10 billion – are now set to proceed in district court in Washington: on August 24th, the FDIC lost its bid to have the case dismissed. In April 2011, BSF successfully opposed the JPMC’s motion to dismiss and for partial summary judgment.Please follow the below links for media coverage of this case.
The Wall Street Journal, August 24, 2011
FDIC Loses Bid to Dodge $10 Billion WaMu Suit
Reuters, August 24, 2011
FDIC has to face $10 billion WaMu-related lawsuit
Law360 [subscription], August 24, 2011
Judge Keeps FDIC In $10B Suit Over WaMu Loans
American Lawyer [subscription], August 24, 2011
The $10 Billion WaMu Hot Potato: Who's Going To Face Claims by WaMu Investor Trustee?
Related Practices: , Securities Litigation