The first of 16 suits by the Federal
Housing Finance Agency against banks over mortgage-backed securities will be
tried in New York next year, with the rest to follow in 2014, a federal judge
said.
U.S. District Judge Denise Cote set
out a proposed schedule for the trials in a court conference with more than two
dozen lawyers in Manhattan
today. Under Cote’s plan, UBS AG (UBSN),
Switzerland’s biggest bank, would be first to defend claims it misled Fannie
Mae (FNMA) and Freddie
Mac (FMCC) about the quality of mortgage loans
underlying securities bought by the two agencies.
The FHFA sued 17 banks including Bank
of America Corp.,JPMorgan Chase
& Co. (JPM), Citigroup Inc. (C), Goldman
Sachs Group Inc. (GS)and Deutsche Bank AG.
(DBK) Most of the suits were filed in Manhattan federal court in September
or moved to the court later. The UBS suit was filed in July. Sixteen cases have
been assigned to Judge Cote.
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