Tuesday, May 08, 2012

Judge to banks: no limits on Fannie/Freddie MBS securities cases


If bank defendants in the Federal Housing Finance Agency's 15 cases before U.S. District Judge Denise Cote in Manhattan federal court weren't already thinking about what it might cost to settle securities claims by Fannie Mae and Freddie Mac's conservator, now would be a good time to start.

On Friday, in a 66-page opinion that wipes out strong defense arguments in all of the FHFA cases before her, Cote denied UBS' motion to dismiss any of the agency's federal securities claims (though she did toss the state-law negligent misrepresentation claim). Most significantly, the judge brushed aside UBS' argument that the FHFA's claims were time-barred under both the statute of limitations and the more obscure statute of repose.


fhfavubs--mtdopinion

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