NY Judge May Have Gone Too Far In MBS Settlement Push

Law360, New York (March 28, 2013, 7:09 PM EDT) -- District courts generally have broad discretion to pressure parties to settle, but a New York federal judge’s decision to severely limit discovery for 15 banks facing government suits over $200 billion in toxic mortgage-backed securities may have crossed a line, experts say.

The banks, including JPMorgan Chase & Co., Citigroup Inc. and Goldman Sachs Group Inc., on Wednesday filed a rare petition to the Second Circuit claiming U.S. District Judge Denise L. Cote had unfairly limited their ability to collect crucial evidence in suits by the...
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