Rakoff Gives Dexia's $774M JPMorgan MBS Suit 2nd Life

Law360, New York (May 17, 2013, 5:50 PM EDT) -- U.S. District Judge Jed S. Rakoff on Friday vacated an earlier decision dismissing Dexia NV/SA's suit accusing JPMorgan Chase Bank NA of selling defective residential mortgage-backed securities, saying that a New York state court should handle the Belgian bank's $774 million claim.

Judge Rakoff ruled that Dexia's claims against JPMorgan were not subject to federal jurisdiction under the Edge Act because the bank did not originate the mortgages packaged into the securities at issue.

Because the case does not fall under federal jurisdiction, Judge Rakoff said...
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