FDIC Gets $900M Guaranty MBS Suit Sent Back To State Court

Law360, New York (December 6, 2012, 6:45 PM EST) -- A Texas federal judge on Thursday said state, not federal, claims predominate in the Federal Deposit Insurance Corp.'s $900 million suit alleging top banks tricked Guaranty Bank into buying toxic mortgage-backed securities, granting the agency's request to send the case back to state court.

U.S. District Judge Sam Sparks said the lawsuit's greater proportion of state law claims favored a remand to state court, but disagreed with the FDIC's assertion that removal was necessary because the case was too remotely related to the bankruptcy case of...
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