Defendants Can't Escape Liability In FHFA Securities Case

Law360, New York (December 11, 2013, 5:02 PM EST) -- A New York federal judge on Tuesday said that a U.S. Securities and Exchange Commission rule altered in 2005 made no fundamental changes to liability under the shelf registration process for mortgage-backed securities, meaning a number of defendants in the multidistrict litigation are still on the hook.

The case stems back to 2011, when the Federal Housing Finance Agency filed suit, accusing Fannie Mae and Freddie Mac of purchasing 86 Countrywide PLC-issued mortgage-backed securities between 2005 and 2008. According to the initial 2011 complaint, the government-sponsored...
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