Barclays Ducks Claims In FHFA's Suit Over $5B In MBS Sales

Law360, New York (November 19, 2012, 10:04 PM EST) -- A New York federal judge Monday dismissed Federal Housing Finance Agency claims against Barclays PLC, ruling that the bank isn't liable under a Virginia law for selling $4.9 billion in purportedly shoddy mortgage-backed securities to Fannie Mae and Freddie Mac because it didn't sell the securities itself.

U.S. District Judge Denise Cote ruled that Barclays and its depositor SABR were not liable under the Virginia Securities Act because the law doesn't cover any misstatements made during a securities offer — as opposed to an actual sale....
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