August 2015

FDIC SUES BANK OF NEW YORK, CITIBANK AND US BANK ALLEGING WIDESPREAD LOAN DOCUMENT FAILURES

August 27, 2015 Lynn Szymoniak

On August 19, 2015, the Federal Deposit Insurance Corporation (“the FDIC”), the U.S. banking regulator, sued Bank of New York Mellon (“BNY”), alleging that the bank failed to protect investors in mortgage-backed securities purchased by Texas-based Guaranty Bank. The FDIC alleged that Guaranty Bank suffered over $440 million in losses on its $2.06 billion investment in mortgage-backed securities when it sold the securities in March 2010.  … [Read More]