Trustee Not Liable For $168M RMBS Loss, 3rd Circ. Says
Law360 (May 21, 2019, 10:05 PM EDT) -- A Third Circuit appeals panel on Tuesday rejected IKB International SA's bid to revive a suit blaming Wilmington Trust Co. for a $168 million loss on residential mortgage-backed securities investments, saying the bank hadn't shown the trustee violated its contractual obligations.
The panel's nonprecedential decision says IKB's breach-of-contract claims against Wilmington Trust fail, because the contracts governing the securities gave the trustee a "primarily ministerial" role in managing the trusts that issued the notes.
IKB said Wilmington Trust should have made sure the securities had all the proper documentation and were being managed properly, but the appeals panel said Wilmington Trust...
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