UBS Can't Derail Suit Over $6B In Bad Fannie, Freddie MBS

Law360, New York (May 4, 2012, 5:19 PM EDT) -- UBS Americas Inc. on Friday lost its bid to stamp out a Federal Housing Finance Authority lawsuit in New York federal court accusing it of steering Fannie Mae and Freddie Mac into $6.4 billion worth of doomed securities.

The FHFA is pursuing 18 actions against various financial institutions involved in the packaging, marketing and sale of residential mortgage-backed securities. After going south several years ago amid skyrocketing home loan defaults, the toxic assets crippled the nation’s economy and sent Fannie and Freddie into conservatorship.

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