FHFA's $6B MBS Suit Against UBS Can Go On, 2nd Circ. Says

Law360, New York (April 5, 2013, 12:41 PM EDT) -- The Second Circuit ruled Friday that the Federal Housing Finance Agency could proceed with its $6.4 billion lawsuit against UBS AG alleging the Swiss investment bank knowingly sold mortgage-backed securities stuffed with faulty home loans to Fannie Mae and Freddie Mac.

In a 25-page ruling, the Second Circuit upheld a decision last May by U.S. District Judge Denise Cote that the FHFA, which has served as the federal conservator for Fannie Mae and Freddie Mac since their collapse in 2008, had brought cases against UBS and...
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