Lehman Faulty-Mortgage Suit Must Wait, FDIC Says

Law360, New York (September 21, 2017, 6:36 PM EDT) -- The Federal Deposit Insurance Corp. asked a New York bankruptcy court Thursday to hit the snooze button on a suit filed by Lehman Brothers against Guaranty Bank over the sale of shoddy mortgages, saying Lehman must go through an administrative claims process first.

The FDIC is receiver for Texas-based Guaranty, which blamed its 2009 collapse on massive losses in its securities portfolio. Bankrupt Lehman Brothers Holding Inc. is suing Guaranty and 22 other mortgage originators in adversary proceedings for allegedly selling it bad loans that blew up in its face, years after it resold them to government-sponsored mortgage giants Fannie Mae...

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