FDIC's $1.5B MBS Lawsuit Must Stay In Federal Court

Law360, Los Angeles (December 10, 2012, 7:42 PM EST) -- A California federal judge on Friday denied the Federal Deposit Insurance Corp.'s request to send a $1.5 billion lawsuit against major lenders back to Texas state court, ruling that federal, not state, claims predominate in the case over whether big banks deceived Guaranty Bank into buying toxic mortgage-backed securities.

U.S. District Judge Mariana R. Pfaelzer ruled that the suit belonged in federal court because the outcome of the proceeding could have an effect on various parties related to the case that are currently being litigated in...
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