2nd Circ. Won't Give Discovery Relief In $200B FHFA Suits
By Jeff Sistrunk
Law360, Los Angeles (July 19, 2013, 9:41 PM EDT) -- The Second Circuit on Friday declined to intervene in the cases of Morgan Stanley and 13 other banks that have said a New York federal judge deprived them of critical evidence to pressure them to settle Federal Housing Finance Agency suits over $200 billion in allegedly toxic residential mortgage-backed securities, saying the banks haven't exhausted other options.
In a brief court order issued Friday, the Second Circuit declined to intervene in the banks' cases and overturn several discovery rulings, saying the banks "have not demonstrated that they lack...