TMST Trustee Pays Banks $72M To Settle Collateral Rights Suit

Law360, New York (July 27, 2012, 10:43 PM EDT) -- The trustee for bankrupt mortgage lender TMST Inc. agreed Friday to pay $72 million to Credit Suisse Securities LLC and several other financial institutions to settle proceedings alleging they have liens on the proceeds from certain mortgage servicing rights under a series of repurchase and swap agreements.

The trustee, Joel I. Sher of Shapiro Sher Guinot & Sandler PA, asked a Maryland bankruptcy court to approve a plan to pay $71.7 million to Credit Suisse, JPMorgan Chase Funding Inc. Citigroup Global Markets Ltd., UBS AG and...
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