FDIC Wants $900M Suit Over Guaranty MBS In State Court

Law360, New York (October 22, 2012, 5:22 PM EDT) -- The Federal Deposit Insurance Corp. urged a Texas federal judge on Friday to send back to state court its $900 million suit alleging several top banks tricked Guaranty Bank into buying toxic mortgage-backed securities, saying the case wasn't related to an ongoing bankruptcy proceeding.

The FDIC, which took over Guaranty after the bank collapsed in 2009, filed the suit Aug. 17 in Travis County Court, targeting Goldman Sachs & Co., JPMorgan Securities LLC and other firms that issued, underwrote and sold $1.8 billion in MBS purchased...
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