SunTrust Blocks FINRA Arbitration In MBS Row

Law360, New York (May 17, 2013, 5:25 PM EDT) -- SunTrust Banks Inc. on Friday won its bid to thwart a Financial Industry Regulatory Authority arbitration proceeding against it by Connecticut hedge fund Turnberry Capital Management LP in a dispute over soured mortgage-backed securities when a New York federal judge ruled Turnberry was not a SunTrust unit’s customer.

U.S. District Judge Naomi Reice Buchwald granted a permanent injunction to prevent now-defunct Turnberry from proceeding with the FINRA arbitration against SunTrust, saying it could not force it to arbitrate because it was not a customer of SunTrust...
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