FHFA Denied Quick Discovery Of ResCap Docs In MBS Row

Law360, New York (October 16, 2012, 4:17 PM EDT) -- The judge overseeing Residential Capital LLC's bankruptcy denied on Friday a bid by the Federal Housing Finance Agency and several underwriters to conduct immediate discovery of three ResCap affiliates in a $6 billion fraud suit over residential mortgage-backed securities.

U.S. Bankruptcy Judge Martin Glenn denied the two July motions for immediate discovery and relief from the automatic stay in connection with the underlying action, FHFA v. Ally Financial Inc., which was originally filed in state court and then removed to the U.S. District Court for the...
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