JPMorgan, Citi Can't Ditch FDIC Suit Over Colonial MBS Sales

Law360, New York (September 27, 2013, 7:53 PM ET) -- JPMorgan Chase & Co., Citigroup Inc. and other major lenders lost a bid Friday to dismiss the Federal Deposit Insurance Corp.'s suit accusing them of duping now-defunct Colonial Bank into buying $388 million worth of doomed mortgage-backed securities.

U.S. District Judge Louis L. Stanton said that the the defendants, which also include HSBC Securities USA Inc., Credit Suisse Securities USA LLC and Deutsche Bank Securities Inc., failed to show that the FDIC should have filed its suit sooner.

The defendants had cited negative publicity about securities...
To view the full article, register now.