Charity Can't Recover MBS Losses From BNY Mellon

Law360, New York (May 1, 2013, 3:36 PM EDT) -- The Knights of Columbus can't recover money lost in mortgage-backed securities from the charity's trustee, the Bank of New York Mellon Corp., a New York state judge ruled Tuesday in a case closely related to a proposed $8.5 billion Bank of America Corp. settlement.

The Catholic charitable group had alleged BNY Mellon, the trustee of some of BofA's Countrywide securities that the Knights invested in, hadn't done enough to stop BofA's robosigning and other bad mortgage servicing practices and didn't even made sure it had the...
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