Deutsche Bank Unit Can't Escape $640M RMBS Dispute

Law360, New York (July 26, 2013, 1:39 PM EDT) -- A New York federal judge on Wednesday refused to dismiss HSBC Bank USA NA’s suit accusing a Deutsche Bank AG unit of misrepresenting loans underlying nearly $640 million in residential mortgage-backed securities, saying HSBC adequately backed its breach of contract claims.

According to U.S. District Judge Robert W. Sweet, HSBC — the trustee for Deutsche Alt-A Securities Mortgage Loan Trust, Series 2006-OA1, the RMBS trust involved in the dispute — had sufficiently alleged that DB Structured Products Inc. had breached its contract with the trust when...
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