Court Will Redo Damages Interest In Deutsche RMBS Suit

Law360 (September 20, 2019, 5:57 PM EDT) -- A Texas federal court agreed on Thursday to rethink its 2017 ruling that determined the interest rate for calculating damages in the Federal Deposit Insurance Corp.'s suit over Deutsche Bank Securities Inc.'s sale of shoddy residential mortgage-backed securities.

U.S. District Judge Xavier Rodriguez granted Deutsche's reconsideration motion, finding U.S. District Judge Sam Sparks was mistaken in ordering a 6% annual interest rate on damages based on an inapplicable section of the Texas Finance Code.

Because the Texas Securities Act declares that damages should include interest "at the legal rate" but does not spell out what that legal rate is, Judge Rodriguez...

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