BNY Mellon Failed As Trustee Of $2B In MBS, FDIC Suit Says

Law360, Los Angeles (August 19, 2015, 9:31 PM EDT) -- The Federal Deposit Insurance Corp. lobbed a suit at Bank of New York Mellon Corp. on Wednesday in New York federal court, accusing the bank of failing as trustee of about $2 billion worth of residential mortgage-backed securities.

Acting on the behalf of defunct Guaranty Bank, the U.S. banking regulator said BNY Mellon was paid to watch over the 12 trusts sponsored by Countrywide Home Loans and EMC Mortgage Corp., a unit of doomed investment bank Bear Stearns.

"BNY Mellon, however, shirked its duty to exercise its powers to protect plaintiff and instead attempted to shorn itself of the responsibilities that...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!