Judge Limits $951M Deutsche Bank MBS Case To Bad Loans

Law360, New York (November 25, 2013, 3:40 PM EST) -- Investors in $951 million worth of Deutsche Bank AG mortgage-backed securities can pursue allegations that some of the securities' loans were defective, but they can't undo the whole deal based on alleged "fundamental breaches" of the contracts, a New York state judge ruled Monday.

Judge Shirley Werner Kornreich said that the investors, led by the securities' trustee, HSBC Holding PLC, could only use the so-called "sole remedy" repurchase provision in the contracts that govern the securities, which sets up the process for investors to demand that...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.