Judge Keeps $5.9B MBS Suit In Federal Court

Law360, New York (March 12, 2012, 4:33 PM EDT) -- A judge on Friday refused to return Federal Home Loan Bank of Boston’s suit against several banks and ratings agencies over $5.9 billion in mortgage-backed securities to Massachusetts state court, saying the bank’s own federal charter puts the suit squarely in federal court.

U.S. District Court George A. O’Toole Jr. said the congressional charter of FHLB Boston, a cooperative bank created by the Federal Home Loan Act of 1932, contains a “sue or be sued” provision that confers federal jurisdiction upon any litigation involving the bank...
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